A Company Has Earnings Per Share of $4

question 48

Multiple Choice

A company has earnings per share of $4.12 and a book value per share of $3.50. If the company has total equity of $262,500, what is the net income?

• A) $301,250
• B) $309,000
• C) $306,300
• D) $303,400
• E) $307,160

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Definitions:

System Justification

The psychological process by which existing social, economic, and political arrangements are legitimized and defended by people, even at the expense of personal and group interest.

Social Dominance Theory

A theory proposing that societies are structured in hierarchical group systems, with some groups dominating or oppressing others.

Individuate

The process of developing a distinct, integrated personality or self, often associated with adolescent development and psychological differentiation from others.

System Justification

A theory suggesting that people have a psychological need to defend and justify the status quo even at the expense of personal or group interest.