Ask Question
17 March, 19:36

Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. her boss asked her to calculate the earnings per share for stockholders. darby noted that the company's balance sheet showed 44 million shares outstanding. to explain to him that her calculation is correct, darby's correct response is

+1
Answers (1)
  1. 17 March, 22:26
    0
    Darby's correct response is $0.045 per share.

    Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.

    Income after taxes = $2,000,000

    shares = $44,000,000

    Earnings per share = $2,000,000 / $44,000,000

    =$2/$44

    =$0.045
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. her boss asked her to calculate the earnings per ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers