A Company Ends the Year with a Net Income of $7.5

question 9

Multiple Choice

A company ends the year with a net income of $7.5 million and an earnings per share value of $1.50. What is the number of common shares outstanding for this company?

• A) 3 million
• B) 4.5 million
• C) 5 million
• D) 6.5 million
• E) 11.25 million

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Definitions:

Health Care Market

The aggregate of all businesses and organizations involved in the provision and funding of health care services, including hospitals, insurance companies, and pharmaceutical companies.

Underallocated Resources

Refers to a situation where resources are not being used to their full potential within an economy, often resulting in inefficiencies and lost output.

Health Care Industry

Comprises sectors that provide goods and services to treat patients with curative, preventive, rehabilitative, and palliative care.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other, leading to imbalances in transactions.