The balance sheets at the end of each of the first two years of operations indicate the following:
If net income is $115,000 and interest expense is $30,000 for 2012,what are the earnings per share on common stock for 2012, (round to two decimal places) ?
Definitions:
Fully Depreciated
The state of an asset after its cost has been completely expensed or written off through depreciation, implying it has no book value.
Average Cost Curve
A graphical representation showing how the average cost per unit of output varies with the level of output.
Marginal Cost Curve
A graphical representation showing how the marginal cost changes with changes in production volume.
Average Variable Cost Curve
A graphical representation showing how the average variable cost (AVC) of production changes with the level of output.
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