Question

Peak Performance Sporting Goods Company continues to perform well. Company executives credit this to the strong partnerships it enjoys with category killer and large discount chains. Last week Peak Performance reported basic EPS [earnings per share] = $.80/share. If the firm has 4,000,000 shares outstanding, net income after taxes for the same period =

Answer 1

Answer:

$3,200,000

Explanation:

The net income after taxes (NIAT) is determined as the product of the basic earnings per share (EPS) by the number of shares outstanding.

Since Peak Performance Sporting Goods has an EPS of $0.80 per share and 4,000,000 shares outstanding, their net income after taxes, for this period is:

$NIAT = \ 0.80 *4,000,000\\NIAT = \ 3,200,000$

Net income after taxes for the same period = $3,200,000.