The Abel Company Provided the Following Information from Its Financial

question 129

Multiple Choice

The Abel Company provided the following information from its financial records: $$\begin{array} { | l | r | l | r | r | } \hline \text { Net income } & \$ 250,000 & \text { Common shares outstanding } 1 / 1 & 200,000 \\\hline \text { Common stock dividends } & \$ 20,000 & \text { Common shares outstanding } 12 / 31 & 300,000 \\\hline \text { Preferred stock dividends } & \$ 25,000 & \text { Preferred shares outstanding } 1 / 1 & 10,000 \\\hline \text { Sales } & \$ 1,000,000 & \text { Preferred shares outstanding } 12 / 31 & 6,000 \\\hline\end{array}$$ What is the amount of the company's earnings per share?

• A) $0.82
• B) $1.00
• C) $0.90
• D) $0.75

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Definitions:

Bad Faith Bargaining

Negotiating with no real intention to reach a settlement or agreement, characterized by deceptive or dishonest practices.

Bargaining Environment

The context in which collective bargaining occurs, including economic conditions, labor laws, and the balance of power between employers and unions.

Reservation Points

In negotiation, the minimum or worst outcome each party is willing to accept before walking away from the table.

Industrial Relations

The study of labor-management relations, including the negotiation of wages, work conditions, union activities, and the roles of government policies on the labor market.