Solved

The Following Information Was Extracted from Smurm Corporation's 2006 Annual

question 30

Multiple Choice

The following information was extracted from Smurm Corporation's 2006 annual report:
$\begin{array}{lr}\text { Common stock }\\\text { Shares outstanding } 12 / 31 / 05 & 90 \text { million } \\\text { New shares issued } 4 / 1 / 06 & 10 \text { million } \\\text { Shares outstanding } 12 / 31 / 06 & 100 \text { million }\end{array}$

$\text { Preferred stock }$
$\$ 10$ par, $10 \%$ , convertible into 2 shares of common stock, shares outstanding $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $50 \text { million }$
1 million options, each to purchase one common share at $\$ 50$ per share

$\begin{array}{lr} \text { Average for year} &\$75\\ \text { Beginning of year } &\$70\\ \text {End of year } &\$78\\\\ \text { Preferred dividends paid}&\$50,000,000\\ \text { Net income for 2006}&\$350,000,000\end{array}$
-Basic earnings per share for 2006 was:

Definitions:

L-Aspartic Acid

A naturally occurring amino acid found in proteins and important for the biosynthesis of other amino acids and in the citric acid cycle.

Peptide Bonds

The chemical bonds formed between the carboxyl group of one amino acid and the amino group of another, linking them together in a protein or peptide chain.

Amide Linkages

Chemical bonds formed by the reaction between the carbonyl group of an acid and the amino group of an amine, characteristic of polymers like nylon and proteins.

Indole Ring

A bicyclic structure composed of a benzene ring fused to a five-membered nitrogen-containing pyrrole ring, found in many organic compounds.