A firm has gross profit of $45 million,EBIT of $20 million,and net income of $8.5 million.If the firm has 5 million shares outstanding,what is the firm's EPS?
A)$9.00
B)$4.00
C)$1.70
D)$2.30
E)$5.00

Question

Quizplus · Accepted Answer

First, we need to calculate the earnings per share (EPS) using the net income and the number of shares outstanding:

EPS = (Net Income) / (Shares Outstanding) 
EPS = $8.5 million / 5 million shares 
EPS = $1.70

So the correct answer is (C) $1.70

A Firm Has Gross Profit of $45 Million,EBIT of $20