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

question 58

Multiple Choice

Using the information given here,what are the earnings per share for GHI Company?
• Income = $375,000
• Number of shares outstanding = 150,000
• Price per share = $60
• Book value per share = $20

• A) $0.33
• B) $1.33
• C) $2.50
• D) $3.00
• E) $7.50

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Definitions:

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities.

Incremental Analysis

A financial decision-making approach focusing on the costs and revenues that change due to a specific decision.

Costs

Costs represent the monetary value spent on resources, labor, and other expenses necessary for the production of goods or services.

Sunk Cost

An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.