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HRCI

SPHR · Question #253

An organization made $50 million last year and has 10 million shares of stock outstanding. The organization's earnings per share is:

The correct answer is B. $5. Earnings Per Share (EPS) = Net Income ÷ Number of Outstanding Shares = $50 million ÷ 10 million shares Extract from HRCI-aligned HR knowledge: In the Leadership and Strategy domain, SPHR candidates are expected to understand key financial metrics like EPS, which is a standard mea

Business Management & Strategy

Question

An organization made $50 million last year and has 10 million shares of stock outstanding. The organization's earnings per share is:

Options

  • A$2
  • B$5
  • C$10
  • D$50

How the community answered

(17 responses)
  • B
    94% (16)
  • D
    6% (1)

Explanation

Earnings Per Share (EPS) = Net Income ÷ Number of Outstanding Shares = $50 million ÷ 10 million shares Extract from HRCI-aligned HR knowledge: In the Leadership and Strategy domain, SPHR candidates are expected to understand key financial metrics like EPS, which is a standard measure of organizational profitability. Mastery of such indicators supports strategic alignment between HR and finance.

Topics

#earnings per share#financial metrics#organizational finance#stock

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