Pueblo Corporation had 100 shares of common stock issued and outstanding at December 31 . 2013 . On July 1 . 2014, Pueblo issued a 1 . percent stock dividend. Unexercised stock options to purchase 20 shares of common stock (adjusted for the 2014 stock dividend) at $20 per share were outstanding at the beginning and end of 2014 . The average market price of Pueblo's common stock (which was not
affected by the stock dividend) was $25 per share during 2014 . The ending market price was $40 . Net income for the year ended December 31 . 2014, was $2,200. What was Pueblo's 2014 basic earnings per share, rounded to the nearest cent?
a. $19.30
b. $20.00
c. $20.20
d. $20.96
B
You might also like to view...
Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Bob's yard next door. It landed on the lawnmower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability to Bob would be:
a. the leaf was not a substantial factor in causing the damage. b. the gasoline in the lawnmower is a superseding cause of the damage. c. it was not foreseeable that the lawnmower would explode. d. the damage was not caused by the leaf but by the gasoline.
P/E ratio measures the ________
A) market value of the stock to earnings per share B) intrinsic value of the stock to earnings per share C) book value of the stock to earnings per share D) market price of the stock to retained earnings
A decrease in fixed financial costs will result in a(n)________
A) increase in financial risk B) decrease in financial risk C) increase in operating leverage D) decrease in operating leverage
The most important reason why a small business should build good relationships with large suppliers is
A. forecasting can be made easier with the suppliers input. B. it will make the small business stand out from other firms buying from the supplier. C. the need for the small business to have prices as low as possible on purchases. D. the relationship can make the small business more competitive.