Hernande Corporation has provided the following data:
The company's earnings per share for Year 2 is closest to:
A) $4.25 per share
B) $0.43 per share
C) $0.61 per share
D) $0.75 per share

Question

Hernande Corporation has provided the following data:
 The company's earnings per share for Year 2 is closest to:
A) $4.25 per share 
B) $0.43 per share 
C) $0.61 per share 
D) $0.75 per share

Quizplus · Accepted Answer

Earnings per share = Net Income ÷ Average number of common shares outstanding*
= $43,000 ÷ 100,000 shares = $0.43 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $400,000 ÷ $4 per share = 100,000 shares

Hernande Corporation Has Provided the Following Data