Financial Information for Retro Designs Includes the Following Selected Data

question 25

Multiple Choice

Financial information for Retro Designs includes the following selected data: $$\begin{array} { l r } \text { Net income (in millions) } & \$ 145 \\\text { Preferred stock dividends (in millions) } & \$ 25 \\\text { Shares outstanding (in millions) } & 240 \\\text { Stock price } & \$ 10.00\end{array}$$ What is the company's earnings per share?

• A) $0.60.
• B) $0.71.
• C) $0.50.
• D) $0.05.

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Definitions:

Price Fixing

A practice where businesses agree on the selling price of their products or services, typically to prevent competition and increase profits, which is often illegal.

Geographical Pricing

A pricing strategy where the price of a product varies depending on the geographical location or market.

Predatory Pricing

A competitive strategy in which a business sets extremely low prices to eliminate competition and monopolize the market.

Bait and Switch

A deceptive marketing strategy where a customer is lured by the advertisement of a low-priced item but then is encouraged to buy a more expensive one.