Choice Corporation Had 100,000 Shares of Commons Stock Outstanding on January

question 16

Multiple Choice

Choice Corporation had 100,000 shares of commons stock outstanding on January 1, 1995. On January 1, 2010 Choice purchased 5,000 shares of its own common stock to fund a stock option plan for it's executives. On December 31, 2010 Choice announced a 3 to 1 stock split. Choice's net income for 2010 was $400,000. How much should Choice report as earnings per share for 2010?

• A) $1.33.
• B) $1.40.
• C) $4.00
• D) $4.21

---

Definitions:

High-Speed

Typically refers to technologies or transportation methods that operate significantly faster than traditional standards, often used in contexts like high-speed internet or high-speed trains.

Magnetically Powered

Devices or systems that are operated or driven by magnetic force or magnetic fields.

Decreasing Average Cost

A situation where the average cost of production decreases as the quantity of output increases, often due to economies of scale.

Market Structures

The organization and characteristics of a market, including the number and size of producers, product differentiation, and the ease of entry and exit, which affect competition and pricing strategies.