Asked by Abbie Medina on Apr 28, 2024
Verified
The company's earnings per share for Year 2 is closest to:
A) $0.31 per share
B) $0.47 per share
C) $0.79 per share
D) $3.88 per share
Earnings Per Share
A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.
- Compute the earnings per share attributable to a corporation.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A
Explanation :
Earnings per share = Net Income ÷ Average number of common shares outstanding*
= $18,400 ÷ 60,000 shares = $0.31 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $240,000 ÷ $4 per share = 60,000 shares
= $18,400 ÷ 60,000 shares = $0.31 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $240,000 ÷ $4 per share = 60,000 shares
Learning Objectives
- Compute the earnings per share attributable to a corporation.