In the Previous Year, Company XYZ Had 500,000 Shares Outstanding

question 6

Multiple Choice

In the previous year, company XYZ had 500,000 shares outstanding, and an EPS of $1.50 a share. This year, the company performed a buyback of 20% of the outstanding shares and by year end EPS had risen to $1.60 per share. The remaining shareholders should be

• A) Positive because the company's earnings increased
• B) Positive because shareholder earnings increased
• C) Concerned because the company's earnings declined
• D) Concerned because the number of shares decreased
• E) Unconcerned because share price is not affected by company earnings

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Definitions:

Parahippocampal Cortex

Cortex located along the dorsal medial temporal lobe surface.

Lateral Geniculate Nucleus

A significant relay center in the thalamus for the visual pathway, receiving major inputs from the retina and sending outputs to the visual cortex.

Olfaction

The sense of smell, which is the detection and identification of chemicals in the air by the olfactory system.

Vision

The ability to interpret the surrounding environment by processing information contained in visible light.