Question

A company reported net income of $9,660,000 for the year. There were 4.1 million shares of common stock outstanding at the beginning of the year and 4.3 million shares outstanding at the end of the year. No dividends were declared during the year. What is the company’s earnings per share (EPS) for the year? (Round your answer to 2 decimal places.)

Answer 1

the earning per share is $2.30 per share

Step-by-step explanation:

The computation of the earning per share is shown below;

As we know that

Earning per share is

= Net income ÷ weighted average of common stock shares outstanding

= $9,660,000 ÷ (4,100,000 + 4,300,000) ÷ 2

= $9,660,000 ÷ 4,200,000

= $2.30 per share

hence, the earning per share is $2.30 per share