Snow International,a ski company in Canada,has 500 shares of outstanding common stock and has not issued any preferred stock.Net income is $27 500.What would be the earnings per share calculation?

Question

Snow International,a ski company in Canada,has 500 shares of outstanding common stock and has not issued any preferred stock.Net income is $27 500.What would be the earnings per share calculation?

Quizplus · Accepted Answer

To calculate earnings per share, we need to divide the net income by the number of outstanding shares of common stock. 
Therefore, earnings per share for Snow International would be $27,500/500 = $55.

Snow International,a Ski Company in Canada,has 500 Shares of Outstanding