The Net Income of the Firm Is $4 Million Dollars

question 182

Multiple Choice

The net income of the firm is $4 million dollars.The firm will pay $500,000 in dividends to the preferred shareholders.There are currently 1 million shares of common stock outstanding.What are the earnings per share for this firm?

• A)$4.00
• B)$3.50
• C)$4.50
• D)$3.00

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Definitions:

Fair Decisions

Decisions that are impartial, just, and equitable, taking into account the legitimate interests and needs of all involved parties.

Path-Goal Theory

An explanation of leadership effectiveness that specifies what the leader must do to achieve high productivity and morale in a given situation.

Leadership

The act of guiding or directing a group towards a goal or vision, often by inspiring and encouraging teamwork and responsibility.

Deficiencies

The lack or shortage of necessary qualities, capacities, or elements.