Recher Corporation's Common Stock Has a Par Value of $3

question 145

Multiple Choice

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share.The company's earnings per share is closest to:

• A) $7.37 per share
• B) $0.45 per share
• C) $0.30 per share
• D) $0.19 per share

---

Definitions:

Gideon's Rule

A legal principle stemming from Gideon v. Wainwright (1963) that guarantees the right to free legal representation for defendants in criminal cases who cannot afford an attorney.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that guarantees equal protection under the law to all citizens.

Constitutional Limit

Restrictions and boundaries set by a constitution that determine the scope of powers and authority of government bodies and officials.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing essential rights and freedoms to American citizens.