Question

Rye Company has provided the following information: Weighted average number of outstanding common shares, 192,000 Net income, $441,600 Number of authorized common shares, 390,000 Number of treasury shares, 23,000 If Rye has issued 215,000 shares, what is Rye's earnings per share (EPS)

Answer 1

$2.30

Step-by-step explanation:

Calculation to determine what is Rye's earnings per share (EPS)

Using this formula

Earnings per share = Net income ÷ Weighted average number of outstanding shares

Let plug in the formula

Earnings per share= $441,600 ÷ (215,000 shares issued - 23 000 shares in treasury)

Earnings per share= $441,600 ÷192,000

Earnings per share= $2.30

Therefore Rye's earnings per share (EPS) is $2.30