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2 June, 08:05

What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?

$100,000

$6.00

$0.50

$6.50

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Answers (1)
  1. 2 June, 12:05
    0
    The answer is C. 0.5

    Explanation:

    Earnings per share is earning/number of outstanding shares.

    After tax profit is $100,000

    Number of shares is 200 common share

    Therefore, EPS is

    100,000/200,000

    =0.5
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