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  3. Shareholders & Income Statements Drill
  • 1.

    A shareholder owns 200,000 shares of a company that has 1,000,000 shares outstanding and 2,000,000 shares authorized. Those shares come with a 10% pre-emptive right. If the company issues another 500,000 shares, how many shares does this shareholder have a right to buy?

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  • Refer to the following income statement to answer the question.

    The Sauce Income Statement Years 1 - 4

    • 2.

      Refer to the income statements above. What was the The Sauce Company's earnings-per-share growth between Years 2 and 3?