Using the Information Given Here,what Are the Earnings Per Share

question 135

Multiple Choice

Using the information given here,what are the earnings per share for DEF Company?
• Income = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10

• A) $1.00
• B) $2.00
• C) $3.00
• D) $5.00
• E) $6.00

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Definitions:

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental increases in output will eventually decrease.

Labor

The human effort, physical or mental, used in the production of goods and services.

Marginal Product

Marginal Product is the additional output resulting from the use of one more unit of a production input, holding all other inputs constant.

Units of Output

The quantities of a good or service produced by a firm or economy.