Question

Mayan Company had net income of $32,830. The weighted-average common shares outstanding were 9,800. The company has no preferred stock. The company's earnings per share is: Multiple Choice $3.35. $5.00. $3.41. $3.29. $1.61.

Answer 1

If the company has no preferred stock the formula for finding the earning per share of a company is to divide net income by the average common shares outstanding. Because by doing this we can find out how much the company earned per share.

EPS= Net income/ Average common shares outstanding.

EPS= 32,830/9800= 3.35

The answer is $3.35 is the earnings per share Mayan Company.

Step-by-step explanation: