Last year Huge TV Corp. had net income equaling $5 million. At the end of the year, the corporation had 4 million shares of stock outstanding. The company's earnings per share were ________.
A)$1.25
B)$0.80
C)$1 million
D)$5 million

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of shares outstanding. So, $5 million divided by 4 million shares equals $1.25 per share.

Last Year Huge TV Corp