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amid [387]
3 years ago
8

​Amber, Inc. provides the following information for​ 2019: Net income $ 330 comma 000 Market price per share of common stock $ 6

0 per share Dividends paid $ 180 comma 000 Common stock outstanding at Jan.​ 1, 2019 160 comma 000 shares Common stock outstanding at Dec.​ 31, 2019 210 comma 000 shares The company has no preferred stock outstanding. Calculate the earnings per share for 2019.​ (Round your answer to two decimal​ places.)
Business
1 answer:
Levart [38]3 years ago
6 0

Answer:

The earnings per share for 2019 is $1.78

Explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income) ÷ (weighted number of outstanding shares)

where,

Net income = $330,000

Weighted number of outstanding shares = (Beginning balance of common stock + ending balance of common stock) ÷ 2

= (160,000 shares + 210,000 shares) ÷ 2

= 185,000 shares

Now put these values to the above formula  

So, the value would equal to

= $330,000 ÷ 185,000 shares

= $1.78 per share

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