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During 2022, Amazing Corp.reported after-tax net income of $900,000 and paid $175,000 in common dividends.The weighted average number of common shares issued in 2022 was 200,000.There are no preferred shares issued.At year end, Amazing's common shares are selling for $81 per share on the Toronto Stock Exchange.
-Amazing's basic earnings per share for 2022 is
A)$22.22.
B)$3.63.
C)$4.50.
D)$5.14.

Question

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During 2022, Amazing Corp.reported after-tax net income of $900,000 and paid $175,000 in common dividends.The weighted average number of common shares issued in 2022 was 200,000.There are no preferred shares issued.At year end, Amazing's common shares are selling for $81 per share on the Toronto Stock Exchange.
-Amazing's basic earnings per share for 2022 is
A)$22.22.
B)$3.63.
C)$4.50.
D)$5.14.

Quizplus · Accepted Answer

Basic earnings per share (EPS) is calculated by dividing the after-tax net income by the weighted average number of common shares. For Amazing Corp., EPS = $900,000 / 200,000 shares = $4.50.

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