As a stockholder of bozo oil company, you receive its annual report. in the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. (a) calculate the earnings per share of bozo oil's common stock.

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21-11-2017
Business

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As a stockholder of bozo oil company, you receive its annual report. in the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. (a) calculate the earnings per share of bozo oil's common stock.

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W0lf93 W0lf93 · Answer 1 · 2017-11-30T22:45:53+01:00

W0lf93 W0lf93

30-11-2017

Bozo Oil has after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. Earnings per share is calculated by dividing $2 million by 750,000 shares ($2,000,000/750,000), yielding a result of $2.67 per share.

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