Settles Corporation Has Provided the Following Financial Data: Dividends

question 296

Multiple Choice

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.The company's earnings per share for Year 2 is closest to:

• A) $0.31 per share
• B) $0.47 per share
• C) $0.79 per share
• D) $3.88 per share

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Definitions:

Production

The process of creating goods or services using inputs such as labor, raw materials, and machinery.

Opportunity Cost

The neglect of potential gains that could be obtained from a variety of choices when one is prioritized.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to invest in one opportunity over another.

Opportunity Cost

In the process of making a decision, the disadvantage of excluding the immediately better option.