Rye Company has provided the following information: • Weighted average number of outstanding common shares,200,000
• Net income,$500,000
• Number of authorized common shares,400,000
• Number of treasury shares,25,000
If Rye has issued 225,000 shares,what is Rye's earnings per share (EPS)?
A)$2.50
B)$1.25
C)$2.00
D)$1.33

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the weighted average number of outstanding common shares. Here, EPS = $500,000 / 200,000 = $2.50.

Rye Company Has Provided the Following Information: • Weighted Average