If a Company Reported a Profit for the Year of £90m,share

question 20

Multiple Choice

If a company reported a profit for the year of £90m,share capital of £200m and a share price of £9.00 - what is the earnings per share (EPS) ?

• A) 20p per share
• B) 10p per share
• C) 45p per share
• D) 22p per share

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Definitions:

Marginal Revenue Curve

A graphical representation showing how additional sale of one more unit of a good or service affects the total revenue.

New Firms

Businesses that have been recently established, entering the market to offer goods or services.

Existing Firms

Businesses that are currently operational and have been established in the market for a period of time.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.