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Marta_Voda [28]
3 years ago
10

Murray Company reports net income of $728,000 for the year. It has no preferred stock, and its weighted-average common shares ou

tstanding is 260,000 shares. Compute its basic earning per share.
Business
1 answer:
slava [35]3 years ago
6 0

Answer:

The answer is $2.8

Explanation:

Earnings Per Share(EPS) is the part of company's earnings that goes to each common share owner.

It is calculated as net income minus preferred dividend(if any) / weighted-average common shares outstanding.

Net income equals $728,000

Weighted-average common shares outstanding equals 260,000 shares

Therefore, basic earning per share is

$728,000 /260,000

= $2.8

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