Rye Company has provided the following information:
Number of issued common shares,225,000;
Net income,$500,000;
Number of authorized common shares,400,000;
Number of treasury shares,25,000.
What is Rye's earnings per share?
A)$2.50
B)$1.25
C)$2.22
D)$1.33

Question

Rye Company has provided the following information:
Number of issued common shares,225,000;
 Net income,$500,000;
 Number of authorized common shares,400,000;
 Number of treasury shares,25,000.
What is Rye's earnings per share?
A)$2.50
B)$1.25
C)$2.22
D)$1.33

Quizplus · Accepted Answer

Earnings per share ($2.50) = Net income ($500,000) / Outstanding shares (225,000 - 25,000)

Rye Company Has Provided the Following Information