Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:
A)$4.25 per share
B)$0.43 per share
C)$0.61 per share
D)$0.75 per share

Question

Hernande Corporation has provided the following data:  The company's earnings per share for Year 2 is closest to:
A)$4.25 per share 
B)$0.43 per share 
C)$0.61 per share 
D)$0.75 per share

Quizplus · Accepted Answer

Earnings per share = Net Income ÷ Average number of common shares outstanding*
= $43,000 ÷ 100,000 shares = $0.43 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $400,000 ÷ $4 per share = 100,000 shares

Hernande Corporation Has Provided the Following Data: the Company's