The Handy Dandy Corporation has an income statement that indicates that Operating Income is $2,375,486 and Net Profit is $1,375,486. It currently has 2 million shares of common stock outstanding and does not issue preferred stock. What is this corporation's approximate Earnings per Share?
A) $0.69
B) $1.18
C) $0.46
D) $0.79
E) $0.19

Question

Quizplus · Accepted Answer

Earnings per Share = Net Profit / Number of Shares Outstanding= $1,375,486 / 2,000,000 shares= $0.6877 per share= $0.69 (rounded to the nearest cent)

The Handy Dandy Corporation Has an Income Statement That Indicates