Reed Plastics just announced the earnings per share for the quarter just ended were $.45. Analysts were expecting $.51. What is the amount of the surprise portion of the announcement?
A)−$.12
B)−$.06
C)$.06
D)$.00
E)$.03

Question

Quizplus · Accepted Answer

The surprise portion is the difference between the actual earnings per share ($.45) and the expected earnings per share ($.51), which is -$.06 ($.45 - $.51 = -$.06). Therefore, the best choice is B.

Reed Plastics Just Announced the Earnings Per Share for the Quarter