Question

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

Answer 1

Answer:

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