Question

In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 191.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. Perrigo's earnings per share (EPS) is closest to: Group of answer choices $0.86 $1.79 $2.81 $3.76

Answer 1

Answer:

$0.86

Explanation:

Earnings per Share = Earnings attributable to holders of Common Stock ÷ Weighted Number of Common Stocks Outstanding.

where,

Earnings attributable to holders of Common Stock = $163.82 million

and,

Weighted Number of Common Stocks Outstanding = 191.33 million

Therefore

Earnings Per Share = $163.82 million ÷ 191.33 million

                                = $0.86