The net profit for a company that builds portable oil well exploration rigs was $10 million last year. The company paid out $4 million in dividends and has 2 million shares of common share outstanding. What are its earnings per share?

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net profit by the number of shares outstanding. Here, EPS = $10 million / 2 million shares = $5 per share.

The Net Profit for a Company That Builds Portable Oil