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CTFA · Question #21

What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?

The correct answer is C. $0.50. See the full explanation below for the reasoning.

Investment Management

Question

What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?

Options

  • A$100,000
  • B$6.00
  • C$0.50
  • D$6.50

How the community answered

(25 responses)
  • A
    8% (2)
  • B
    16% (4)
  • C
    72% (18)
  • D
    4% (1)

Topics

#EPS#earnings per share#financial ratios#equity analysis

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