Question

The net income available to stockholders is $230,000. The beginning number of common shares outstanding was 100,000. The ending number of common shares outstanding was 150,000. What is the earnings per share

Answer 1

Answer:

$1.84

Explanation:

The formula for earning per share (EPS) is given as;

= Net income of the company / Average outstanding shares of the company

Given that ;

Net income = $230,000

Average outstanding shares = (100,000 + 150,000) / 2

= 125,000

Therefore,

EPS = $230,000 / 125,000

= $1.84