A company with 20 million shares earns $1.6 million one year and loses $2.6 million the next year. Find the per-share income for two years.
A) $0.05 million
B) $1 million
C) -$0.05 million
D) -$1 million

Question

Quizplus · Accepted Answer

To find the per-share income, we need to divide the total income over two years by the number of shares.
Total income over two years = 1.6 million – 2.6 million = -1 million
Per-share income = Total income / Number of shares
Per-share income = -1 million / 20 million
Per-share income = -0.05 million
Therefore, the per-share income for two years is -$0.05 million, which corresponds to choice C.

A Company with 20 Million Shares Earns $1