Delfavero Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:
A)$10.33 per share
B)$0.52 per share
C)$0.34 per share
D)$0.79 per share

Question

Delfavero Corporation has provided the following data:  The company's earnings per share for Year 2 is closest to:
A)$10.33 per share 
B)$0.52 per share 
C)$0.34 per share 
D)$0.79 per share

Quizplus · Accepted Answer

Earnings per share = Net Income ÷ Average number of common shares outstanding*
= $23,700 ÷ 70,000 shares = $0.34 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $140,000 ÷ $2 per share = 70,000 shares

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