During the Current Year, East Corporation Had 2 Million Shares

question 24

Multiple Choice

During the current year, East Corporation had 2 million shares of common stock outstanding. Two thousand, $1,000, 8% convertible bonds were issued at face amount at the beginning of the year. East reported income before tax of $3 million and net income of $1.8 million for the year. Each bond is convertible into ten shares of common stock. What is diluted EPS?

• A)$.90.
• B)$.95.
• C)$.89.
• D)$.94.

Understand how market mechanisms and formal lines of authority coordinate functions in various types of organizations.

Recognize the importance of structure in supporting innovation within large, established firms entering new lines of business.

Explain the concepts of "span of control" and the structural implications of "tall versus flat" organizations.

Identify the elements of organizational complexity including vertical, horizontal, and geographical division of labor.

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Definitions:

Low-involvement

Products or services that require minimal thought and effort from consumers before purchase due to their simplicity and low cost.

High-involvement

Refers to purchase decisions that carry a higher risk to buyers and therefore require more thought and research.

Reference Groups

Groups that people refer to when evaluating their own qualities, circumstances, attitudes, values, and behaviors.

Marketers

Marketers are professionals or companies involved in the promotion and selling of products or services, including advertising, market research, and strategy development.