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Murray Company reports net income of $731,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 340,000 shares. Compute its basic earnings per share.
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Murray Company reports net income of $731,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 340,000 shares. Compute its basic earnings per share.

User Mehreen
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4 votes

Answer:

$2.15 Per share

Step-by-step explanation:

The earnings per share (EPS) shows the earning per each common shares. It can be calculated as the below

EPS= (Net Income- Preferred Dividend) / Weighted Average common share outstanding

EPS= $731,000 - $0 / $340,000

EPS= $731,000 / $340,000

EPS= $2.15 Per share

The basic earnings per share is $2.15

User Kongkea
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