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Glupotech Reported Profits of $300,000 This Year

Question 1

Multiple Choice

Glupotech reported profits of $300,000 this year. Its capital structure consists of 100,000 authorized preference shares with 10,000 outstanding. It had 600,000 ordinary shares authorized and outstanding. The company declared a $100,000 dividend. What was the company's basic EPS?


A) 1.00
B) 0.66
C) 0.50
D) 0.33
E) 0.25

Correct Answer:

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