If There Are 250 Shares of Stock Outstanding, What Is

question 278

Multiple Choice

If there are 250 shares of stock outstanding, what is the amount of the earnings per share?

• A) $0.64
• B) $0.80
• C) $1.21
• D) $1.44
• E) $2.19

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.