Wild Trails Inc., an adventure resort in Texas, has 500 shares of outstanding common stock and has not issued any preferred stock. Its net income is $27,500. Wild Trails Inc.'s earnings per share (EPS) is _____.
A) $55
B) $0.018
C) $13,750
D) $27,000

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of outstanding shares. Here, $27,500 divided by 500 shares equals $55 per share.