16.6k views
1 vote
Salt Company reports net income of $360 million for 2017; the company's tax rate is 40%. At the beginning of the year, 200 million common shares were outstanding. On July 1, Salt sells an additional 80 million shares. The company's basic EPS will be _________.

User Spodger
by
7.5k points

1 Answer

4 votes

Answer:

Earning per share = $1.8 $ per share

Step-by-step explanation:

Given:

Net income = $360 million

Common shares outstanding = 200 million

Company's tax rate = 40%

Earning per share = ?

Computation of Earning per share:

Earning per share = Net income / Common shares outstanding

Earning per share = $360 million / $200 million

Earning per share = $1.8 $ per share

Note: Company's tax rate is used to calculate net income from gross income

User Netwons
by
7.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.