Stone,Inc.had 2012 earnings of $1,500,000.Cash dividends per share were $0.50.The company had an average of 1,225,000 shares of common stock outstanding.The market price of the stock at the end of the year was $6.00 per share.What was the earnings per share for 2012?

Question

Quizplus · Accepted Answer

Earnings per share is calculated by dividing the total earnings by the number of shares outstanding.

Total earnings = $1,500,000 
Number of shares outstanding = 1,225,000

Earnings per share = $1,500,000 / 1,225,000 = $1.22

Therefore, the answer is C.

Stone,IncHad 2012 Earnings of $1,500,000