Morrison Corporation Had the Following Common Stock Record During the Current

question 76

Multiple Choice

Morrison Corporation had the following common stock record during the current calendar year: $\begin{array}{|l|l|}\hline \text { Outstanding-January } 1 & 2,000,000 \\\hline \text { Additional shares issued 3/31 } & 100,000 \\\hline \text { Distributed a } 10 \% \text { stock dividend on } 6 / 30 & \\\hline \text { Additional shares issued } 9 / 30 & 100,000 \\\hline\end{array}$
- What is the number of shares to be used in computing basic EPS?

• A) 2,000,000.
• B) 2,205,000.
• C) 2,307,500.
• D) 2,335,000.

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Definitions:

Market Price

The going rate at which one can buy or sell an asset or service in the market.

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its share price, often used by investors to gauge the income a stock provides.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a share in the company's profits via dividends.