Answer:
The correct answer is $23,33 per share.
Explanation:
According to the scenario, the given data are as follows:
Net income for 2019 = $280,000
Number of shares in 2018 = 10,000
Number of shares in 2019 = 14,000
So weighted average number of shares = (10,000 + 14,000) ÷ 2
= 12,000
So, we can calculate the earnings per share by using following formula:
Earning per share = Net income for 2019 ÷ weighted average number of shares
By putting the value, we get
$280,000 ÷ 12,000
= $23.33 per share
