Masterworks Manufacturing has after-tax profits that total $625,000. If the firm has 250,000 shares, what is the amount of earnings per share?

Name: Masterworks Manufacturing has after-tax profits that total $625,000. If the firm has 250,000 shares, what is the amount of earnings per share?
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Earnings per share can be calculated by dividing the total after-tax profits by the number of shares.
Earnings per share = $625,000 ÷ 250,000 = $2.50. 
Therefore, the correct option is D.

Masterworks Manufacturing Has After-Tax Profits That Total $625,000