At January 1, 2014, Foxmore Company Had 80,000 Shares of Common

question 18

Multiple Choice

At January 1, 2014, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock. During the year, they issued 40,000 additional shares of common stock. At December 31, 2014, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2014: At December 31, 2014, how much is the earnings per share for total net income (loss) ?
(Please round all calculations to the nearest cent.)

• A)$(1.20)
• B)$7.85
• C)$10.65
• D)$(2.80)

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Definitions:

Incremental Analysis

The process of comparing the expected costs and benefits of alternative decisions, focusing on the differences between them.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Unprofitable Segment

A division or part of a company that does not generate profit and may result in a financial loss for the company.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory or investing in new equipment, worthwhile.