The Net Income of the Firm Is $4 Million Dollars

question 182

Multiple Choice

The net income of the firm is $4 million dollars.The firm will pay $500,000 in dividends to the preferred shareholders.There are currently 1 million shares of common stock outstanding.What are the earnings per share for this firm?

• A)$4.00
• B)$3.50
• C)$4.50
• D)$3.00

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of goods and services, where investments, production, and distribution are determined mainly by competition in a free market.

Communism

A political and economic ideology aiming for a classless society where all property is publicly owned, and each person works and is paid according to their abilities and needs.

Oppressive Social Systems

Systems that perpetuate inequalities and discrimination through practices and policies, marginalizing certain groups of people.

Conceptions

Conceptions deal with the way ideas or notions are formed in the mind, including the understanding of concepts, phenomena, or theoretical frameworks.