The Handy Dandy Corporation has an income statement that indicates that Earnings Before Taxes is $2,375,486 and it pays taxes at 35% of earnings. It currently has 1 million shares of common stock outstanding and does not issue preferred stock. What is this corporation's approximate Earnings per Share?
A) $1.54
B) $0.42
C) $0.65
D) $2.38

Question

Quizplus · Accepted Answer

Earnings per Share = (Earnings Before Taxes - Taxes) / Number of Shares Outstanding= ($2,375,486 - $2,375,486 * 0.35) / 1,000,000= $1.54

The Handy Dandy Corporation Has an Income Statement That Indicates