RDJ Manufacturing had 300 million shares of stock outstanding at the end of 2018. During 2018, the company reported net income of $600 million, retained earnings of $900 million, and $240 million in dividends paid. What is RDJ's earnings per share?

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of shares outstanding. EPS = $600 million / 300 million shares = $2.00.

RDJ Manufacturing Had 300 Million Shares of Stock Outstanding at the End