As per the given stock details, Xylet's Earning per share (EPS) is $4.00
Earning per share:
Earning per shares is calculated by difference between net income and preferred dividends, divided by the average number of outstanding common shares.
Given,
Libby bought 250 stocks of a company named Xylet last year. Xylet's total earning for the IS year is $ 4million and it has 1,000,000 outstanding stocks.
Here we need to find the Xylet's Earning per share (EPS).
While we looking into the given question we have identified the following stock details,
Number of stocks brought = 250
Total earning = $4million = $4,000,000
Outstanding stocks = 1,000,000
So, the earing per share is calculated as,
=> EPS = Total earning / Outstanding stocks
=> EPS = 4000000/1000000
=> EPS = 4.
Therefore, the earning per share is $4.00
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