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Barnard, Inc.'s 2010 income statement lists the following income and expenses: EBIT = $500,000, Interest expense = $45,000, and Taxes = $140,000. Barnard's has no preferred stock outstanding and 200,000 shares of common stock outstanding. What are its 2010 earnings per share?

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kaympoey08

Answer:

The answer is $1.515

Explanation:

EPS = profit after interest and tax / number of shares

Profit after interest and tax = $500000-$45000-$152000=$303000

EPS = $303000/200000 = 1.515

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