Kirova Company has provided the following information: • Number of issued common shares,900,000
• Net income,$1,000,000
• Number of authorized common shares,1,000,000
• Weighted average number of outstanding common shares,800,000
• Number of treasury shares,100,000
What is Kirova's earnings per share (EPS)?
A)$1.43
B)$1.25
C)$1.11
D)$1.00

Question

Quizplus · Accepted Answer

To calculate Kirova's earnings per share (EPS), we divide net income by the weighted average number of outstanding common shares.

EPS = Net income / Weighted average number of outstanding common shares
EPS = $1,000,000 / 800,000
EPS = $1.25

Therefore, the answer is B, $1.25.

Kirova Company Has Provided the Following Information: • Number of Issued