A business has 75 million shares and its net marketing contribution is $550 million.The other expenses,including interest and taxes,amount to $280 million.Calculate the earnings per share for the business.
A)$2.4 per share
B)$6 per share
C)$1.2 per share
D)$3.6 per share
E)$4.8 per share

Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) = Net marketing contribution - Other expenses = $550 million - $280 million = $270 million
Earnings per share (EPS) = (EBIT / Number of shares) = $270 million / 75 million shares = $3.6 per share. Therefore, the correct answer is option D.

A Business Has 75 Million Shares and Its Net Marketing