The Rainbow Company has total sales of $713,200 and a profit margin of 8.5 percent.Currently,the firm has 12,500 shares outstanding.What are the earnings per share?
A)$2.98
B)$3.31
C)$3.56
D)$4.58
E)$4.85

Name: The Rainbow Company has total sales of $713,200 and a profit margin of 8.5 percent.Currently,the firm has 12,500 shares outstanding.What are the earnings per share? A)$2.98 B)$3.31 C)$3.56 D)$4.58 E)$4.85
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Question

Quizplus · Accepted Answer

Earnings per share = (0.085 × $713,200)/12,500 = $4.85

The Rainbow Company Has Total Sales of $713,200 and a Profit