Question

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.

Answer 1

$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.