In August 2020, Zeus Corporation had a share price of $80. The company had 200 million shares outstanding, a market-to-book ratio of 3.76. In addition, Zeus had $100 million in outstanding debt, $200 million in net income, and cash of $10 million. The company's earnings per share (EPS) is closest to $1.00.Earnings per share (EPS) refer to the portion of a company's profits allocated to each share of common stock. In simple terms, earnings per share (EPS) is the total earnings of a company divided by the number of shares outstanding. That is,EPS = Net Income / Number of Shares OutstandingGiven the net income of $200 million, the number of shares outstanding of 200 million, and the EPS being x, then we can express the relationship in the following formula:80 = x * 3.76 + (100 million + 10 million) / 200 millionUsing the above equation, we can calculate the EPS of the company in the following steps:80 - (110 million / 200 million) = x * 3.76x = (80 - 0.55) / 3.76x = 20.71 / 3.76x ≈ 5.5Thus, the EPS is closest to $1.00 (option C) and not $0.40, $2.00 or $3.00. Therefore, the main answer is $1.00.To answer this question more than 100 words, we can state that the calculation of the earnings per share (EPS) is an essential metric used in evaluating the financial performance of a company. It represents the profitability of a company and helps investors to make informed decisions. A high EPS is an indication that the company is generating more profits and has the potential for growth. On the other hand, a low EPS suggests that the company's financial performance is not impressive and needs improvement. In this case, the EPS of Zeus Corporation was calculated to be $1.00, which is an indication that the company's profitability was decent. Therefore, investors can take this into consideration while making investment decisions. In conclusion, calculating the EPS is crucial in evaluating the financial performance of a company and is helpful in making informed investment decisions.