219k views
4 votes
Company XYZ has Earnings of $5000,000,000 and 2000,000,000 shares outstanding? What is this company's earnings per share (EPS)? Enter your answer as a number rounded to 2 decimal places; example: 1.12.

1 Answer

4 votes

Answer:

$2.50 per share

Step-by-step explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income) ÷ (Outstanding Number of shares)

= ($5000,000,000) ÷ (2000,000,000 shares)

= $2.50 per share

It shows a relationship between the net income and the outstanding number of shares so that accurate per share value can come.

User Knowledge Drilling
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.