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
• Number of outstanding common shares, 800,000
• Number of treasury shares, 100,000
What is Kirova's earnings per share?
A) $1.43
B) $1.25
C)$1.11
D)$1.00

Question

Quizplus · Accepted Answer

To calculate earnings per share, we divide the net income by the number of outstanding common shares.

Earnings per share = Net income / Outstanding common shares 
Earnings per share = $1,000,000 / 800,000 
Earnings per share = $1.25

Therefore, the answer is B) $1.25.

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