A Firm Had Earnings Per Share of $3

question 6

Multiple Choice

A firm had earnings per share of $3.25 for the year.The book value per share at the beginning of the year was $13.The firm paid out $.975 in dividends per share at the end of the year.If the rate of return on book value remains constant from year to year,what will the earnings per share be for the following year?

• A)$7.50
• B)$3.82
• C)$4.23
• D)$5.53
• E)$3.25

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Definitions:

Rectal Temperature

The measurement of body temperature taken from inside the rectum, which is considered more accurate than some other methods of temperature measurement.

Thermometer

An instrument, either electronic or disposable, that is used to measure body temperature.

Oral Temperature

Body temperature measured by a thermometer placed in the mouth, reflecting the core body temperature.

Pulse Points

Specific locations on the body where arterial pulsations can be felt, such as the wrists, neck, and ankles, useful for assessing heart rate and circulation.