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

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Definitions:

Supply Partnership

A strategic agreement between a buyer and a supplier aimed at increasing the value both parties receive from the relationship, often involving cooperation and long-term engagement.

Supply Partnerships

Long-term agreements between companies and their suppliers to work together for mutual benefit, often leading to improved efficiency and reduced costs.

Reciprocity Arrangements

Agreements between two or more parties to exchange goods or services with each other, often under mutually beneficial terms.

Mutually Beneficial Objectives

Goals or aims shared by two or more parties that provide advantages to all involved.