Question

Makers Corp. had additions to retained earnings for the year just ended of $415,000. The firm paid out $220,000 in cash dividends, and it has ending total equity of $5.6 million. The company currently has 170,000 shares of common stock outstanding. a. What are earnings per share?

Answer 1

Earning per share is 2.44 dollars.

Step-by-step explanation:

The earning per share is a financial ratio determine by dividing total profit after tax made by a company in a period with total number of outstanding shares.

The earning per share is calculated below

EPS = $ 415,000/ 170,000 = 2.44 $

This ratio is widely used in stock market and valuation of business.