Use the table for the question(s)below.

-Refer to the income statement above.For the year ending December 31,2015 Luther's earnings per share are closest to:
A)$1.01
B)$1.04
C)$1.58
D)$4.04
E)$10.77

Question

Use the table for the question(s)below.
 
-Refer to the income statement above.For the year ending December 31,2015 Luther's earnings per share are closest to:
A)$1.01 
B)$1.04 
C)$1.58 
D)$4.04 
E)$10.77

Quizplus · Accepted Answer

To calculate the earnings per share we need to divide the net income attributable to common shareholders by the weighted average number of common shares outstanding. 
Net income attributable to common shareholders for the year ending December 31, 2015 is $4,162 million. 
Weighted average number of common shares outstanding for the year ending December 31, 2015 is 4,008 million. 
Therefore, the earnings per share are: 
Earnings per share = Net income attributable to common shareholders / Weighted average number of common shares outstanding = $4,162 million / 4,008 million = $1.04. 
The closest answer choice is B, $1.04.

Use the Table for the Question(s)below