The Following Information Is Available for the Christian Company What Is the Earnings Per Share for the Year Ended

question 65

Multiple Choice

The following information is available for the Christian Company:
$\begin{array} { l } \text {Net income for the year ended December 31, 2014 }&\$127.4\\ \text {Retained earnings, December 31, 2014 }&150.0\\ \text {Retained earnings, December 31, 2013 }&180.0\\ \text { \( \$ 5 \) par Common stock, December 31, 2014}&80.0\\ \text {\( \$ 5 \) par Commonstock, December 31, 2013 }&80.0\\ \text {Total liabilities, December 31, 2014 }&240.0\\ \text {Total liabilities December 31,2013 }&182.0\\\end{array}$

What is the earnings per share for the year ended December 31,2014?

• A) $1.04
• B) $1.56
• C) $7.50
• D) $7.96

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Definitions:

International Fisher Effect

The International Fisher Effect is a theory that suggests differences in nominal interest rates in different countries are directly proportional to changes in the exchange rate between their currencies.

Spot Exchange Rate

The current exchange rate at which one currency can be immediately exchanged for another currency.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Spot Trade

A financial transaction for the immediate exchange of a commodity or currency at the current market price.