Answer:
$30
Explanation:
Earning per share is calculated dividing Earning for the year excluding preferred dividend by outstanding number of shares.
Formula for EPS is as follow:
Earning Per share = ( Net Income - Preferred Dividend ) / Outstanding Numbers of shares
We need to calculate the net Income, which is calculated as below
Net Income = Revenue - Cost of Goods Sold - Operating Expenses - Financing costs = $50,000,000 - $40,000,000 - $5,000,000 - $2,000,000
Financing costs = $3,000,000
Placing Values in the formula of EPS
EPS = $3,000,000 / 100,000 shares = $30
