Use the information above to answer the following question.Which of the following is closest to the company's earnings per share for the current year?
A)$10.00
B)$20.00
C)$7.25
D)$7.50

Question

Quizplus · Accepted Answer

The earnings per share (EPS) for the current year can be calculated by dividing the net income by the number of outstanding shares. From the information given in the question, we know that the net income is $300,000 and the number of outstanding shares is 40,000. Therefore, EPS = $300,000 ÷ 40,000 = $7.50. The closest option to $7.50 is D, which is $7.25. However, $7.25 is lower than the actual EPS, so the best choice is D.

Use the Information Above to Answer the Following Question