A Company Had 30,000 Shares of Common Stock Outstanding on January

question 57

Multiple Choice

A company had 30,000 shares of common stock outstanding on January 1, 2006. On March 1, the company issued an additional 18,000 shares of common stock. Net income for the year was $99,000. The earnings per share were (round to the nearest cent) :

• A) $0.18.
• B) $1.27.
• C) $2.06.
• D) $2.57.

---

Definitions:

Fuel Payments

Money expended to cover the cost of fuel, often in the context of transportation, heating, or energy production.

Total Output

The total quantity of goods or services produced by an economy or a firm within a specific period.

Marginal Product

The additional output produced by adding one more unit of a specific input, holding all other inputs constant.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.