Answer:
$2.30
Explanation:
Total shares of common stock = 4,100,000 + 4,300,000 = 8,400,000
Weight of the beginning of the year common stock = 4,100,000 ÷ 8,400,000 = 0.49, or 49%
Weight of the ending of the year common stock = 4,300,000 ÷ 8,400,000 = 0.51, or 51%
Weighted average share outstanding = (4,100,000 × 49%) + (4,300,000 × 51%) = 4,202,000
EPS = Net income ÷ Weighted average share outstanding = $9,660,000 ÷ 4,202,000 = $2.30
