For the Year That Just Ended, a Company Reports Net

question 112

Multiple Choice

For the year that just ended, a company reports net income of $1,500,000.There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding.What is the earnings per share?

• A) $5.00
• B) $2.50
• C) $6.00
• D) $3.00

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Definitions:

Longitudinal

A type of study or analysis that follows the same subjects over a period of time to observe changes or outcomes.

Cross-Sectional Study

A research method that involves observing a defined population at a single point in time or over a short period, making it possible to examine correlations and infer potential causations.

Cohort Differences

Variations in characteristics, experiences, or developments among groups of people who were born around the same time and share similar cultural or historical contexts.