Question

The Handy Dandy Corporation has an income statement that indicates that operating income is $2,375,486 and net profit is $1,375,486. In 2011, the corporation had 1 million shares of common stock outstanding; in 2012, they had 3 million shares of common stock outstanding. What is this corporation’s approximate earnings per share?

Answer 1

Answer:

$0.46 per share

Explanation:

The corporation’s approximate earnings per share is shown below:

Earning per share = (Net profit earned) ÷ (Number of common stock outstanding)

= ($1,375,486) ÷ (3,000,000 shares)

= $0.46 per share

We assume that we have to find out for the year 2012 and the net  profit and the operating income is given for the year 2012