Question

If Raines Company earned $ 180 comma 000 in net income and paid cash dividends of $ 30 comma 000​, what are​ Raines's earnings per share if it has 70 comma 000 shares​ outstanding

Answer 1

$2.57 per share

Step-by-step explanation:

Earning per share (EPS) denotes the amount per share available for distribution among shareholders. The Company decides to distribute certain portion of income among shareholders depending on the availability of future profitable projects available with the Company. EPS is calculated as follows:

EPS = Net Income / Weighted average shares outstanding

EPS = 180,000 / 70,000

EPS = 2.57 / share