ABC Company Has Net Income of $5 Million, $40 Million

question 146

Multiple Choice

ABC Company has net income of $5 million, $40 million of assets, and $10 million of liabilities. The number of outstanding shares of stock is 3 870 000 shares. What are earnings per share?

• A) $1.29
• B) $0.77
• C) $2.35
• D) $7.75
• E) Earnings per share cannot be computed with the information provided.

---

Definitions:

Asymptotes

Lines that a graph of a function approaches but never touches, indicating direction of curves infinitely far away.

Hyperbola

A type of smooth curve lying in a plane, formed by the intersection of a double cone with a plane in such a way that both halves of the curve are mirror images of each other.

Graph

The visual representation of data or functions on a coordinate system, showing relationships between variables.

Standard Form

A way of writing numbers using digits, or a specific way to write equations, such as Ax + By = C for lines.