Liberty Corporation Has the Following Information as of December 31

question 96

Multiple Choice

Liberty Corporation has the following information as of December 31, 2012: Based on the information above, how many shares of common stock are outstanding?

• A) 20,000.
• B) 7,000.
• C) 5,000.
• D) 2,000.

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Definitions:

After-Tax Earnings

The amount of net income a firm has after all taxes have been paid, representing the company's profitability.

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.

Taxable Income

The amount of income subject to tax, after deductions and exemptions, as determined by tax laws.

Quarterly Dividends

These are dividends paid by a corporation to its shareholders every three months, or four times a year, representing a portion of the company's earnings.