Question

Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $707,000, Interest expense = $58,000, and Taxes = $224,000. Bullseye's has no preferred stock outstanding and 370,000 shares of common stock outstanding. What are the 2008 earnings per share?

Answer 1

$1.15 per share

Step-by-step explanation:

The computation of the earning per share is shown below:

Earning per share = Net income ÷ common stock outstanding shares

where,

Net income is

= EBIT - interest expense - taxes

= $707,000 - $58,000 - $224,000

= $425,000

And, the common stock outstanding shares is 370,000

So, the earning per share

= $425,000 ÷ 370,000 shares

= $1.15 per share