Total revenues and net income for 2017 for Tiger-Cat Corporation is $3,000,000 and $200,000,respectively.Tiger-Cat Corporation has had 400,000 common shares of stock outstanding for all of 2017.The selling price of Tiger-Cat Corporation common shares on December 31,2017,is $15.Earnings per share for 2017 is:
A) $30.00
B) $7.50
C) $7.00
D) $0.50

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing net income by the number of outstanding shares. For Tiger-Cat Corporation, EPS = $200,000 / 400,000 shares = $0.50.

Total Revenues and Net Income for 2017 for Tiger-Cat Corporation