Question

Makers Corp. had additions to retained earnings for the year just ended of $205000. The firm paid out $185000 in cash divends, and it has ending total equity of $4.90 million. The company currently has 100,000 shares of common stock outstanding. What ante earnings per share

Answer 1

3.9

Explanation:

The retained earnings for the year is $205,000

The firm paid out $185,000 in cash dividend

It has total equity of$4.90 million

100,000 common shares are outstanding

Therefore the earnings per share van be calculated as follows

= 205,000+185,000/100,000

= 390,000/100,000

= 3.9

Hence the earnings per share is $3.9