Assume a Company Had Net Income of $20,000 and 8,000

question 8

Multiple Choice

Assume a company had net income of $20,000 and 8,000 common shares were outstanding the entire year.Also assume there were 2 convertible securities outstanding the entire year: What is the diluted EPS? (Rounded to the nearest cent)

• A) $2.50
• B) $2.40
• C) $2.11
• D) $2.00

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Definitions:

Nativist Theory

A theory in psychology that suggests that certain skills or abilities are "native" or hard-wired into the brain at birth.

Syntax

The set of rules and principles that dictate the structure of sentences in a language, including word order and sentence formation.

Semantics

The study of meaning in language, including the analysis of the meanings of words, phrases, and sentences.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, preventing them from seeing alternative uses.