Etling Eccentricities has 400,000 shares of common stock outstanding, net income after tax of $1.2 million, retained earnings of $17 million, and total equity of $35 million. What is EE's earnings per share?
A) $3.00
B) $4.00
C) $4.25
D) $8.75
E) $13.50

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of shares outstanding. Thus, EPS = $1,200,000 / 400,000 = $3.00.

Etling Eccentricities Has 400,000 Shares of Common Stock Outstanding, Net