Use the following information for questions
During 2016, Pattar Corp.reported after-tax profit of $450,000 and paid $75,000 in common dividends.The weighted average number of common shares issued in 2016 was 150,000.There are no preferred shares issued.At year end, Pattar's common shares are selling for $60 per share on the Toronto Stock Exchange.
-Pattar's earnings per share for 2016 is
A)$25.00.
B)$20.00.
C)$3.00.
D)$2.50.

Question

Use the following information for questions 
During 2016, Pattar Corp.reported after-tax profit of $450,000 and paid $75,000 in common dividends.The weighted average number of common shares issued in 2016 was 150,000.There are no preferred shares issued.At year end, Pattar's common shares are selling for $60 per share on the Toronto Stock Exchange.
-Pattar's earnings per share for 2016 is
A)$25.00.
B)$20.00.
C)$3.00.
D)$2.50.

Quizplus · Accepted Answer

To calculate earnings per share, divide after-tax profit by the weighted average number of common shares issued:
Earnings per share = After-tax profit / Weighted average number of common shares
Earnings per share = $450,000 / 150,000
Earnings per share = $3.00

Use the Following Information for Questions