SOLVED EXAMPLES ON EPS

Question

PLEASE GIVE SOME SOLVED EXAMPLES SHOWING TO CALCULATE THE EARNING PER SHARE IN FINANCE

Answer 1

Example

Company A paid dividend of $235,100 during the year ended December 31, 2010 and its weighted average common shares outstanding were 200,000 during the year. There were no preferred stock outstanding and preferred stock dividend. Calculate the EPS of company A.

Solution
EPS = ( $235,100 − 0 ) / 200,000 ≈ $1.18