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 (EPS)?
A)$1.43
B)$1.25
C)$1.11
D)$1.00

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing net income by the number of outstanding shares. In this case, the net income is $1,000,000 and the number of outstanding shares is 800,000. Therefore, EPS is $1.25 per share. Option B is the correct answer.

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