Using the Information Given Here, What Are the Earnings Per

question 129

Multiple Choice

Using the information given here, what are the earnings per share for GHI Company?
• Earnings = $375,000
• Number of shares outstanding = 150,000
• Price per share = $60
• Book value per share = $20

• A) $0.33
• B) $1.33
• C) $2.50
• D) $3.00
• E) $7.50

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Definitions:

Asset Characteristics

The inherent properties and qualities of an asset that affect its value, performance, and risk profile.

MACRS Depreciation

The Modified Accelerated Cost Recovery System is a method of depreciation used for tax purposes in the United States, allowing for faster depreciation in the early years of an asset's life.

Deferred Tax Liability

A tax obligation that arises when taxable income and accounting income differ, to be paid in future periods when those differences reverse.