If a company reported a profit for the year of £90m,share capital of £200m and a share price of £9.00 - what is the earnings per share (EPS)?
A) 20p per share
B) 10p per share
C) 45p per share
D) 22p per share

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the profit by the number of shares. If the share capital is £200m and the share price is £9.00, the number of shares is £200m / £9.00 = approximately 22.22 million shares. Therefore, EPS = £90m / 22.22 million shares = approximately 45p per share.

If a Company Reported a Profit for the Year of £90m,share