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smith company the following information on the financial statements: net income $50,000 preferred dividends 8,000 average common stockholder’s equity 180,000 average number of common shares outstanding 250,000 shares market price $2 per share what is the earnings per share (to the nearest penny)?

Respuesta :

0.17, The monetary worth of an organization's earnings per outstanding share of common stock is known as earnings per share.

Is a high profit per share desirable?

Calculating earnings per share

You would deduct those from the earnings if the company was required to distribute preferred dividends. When a company has a high EPS, it has done well during the earnings period and investors are prepared to pay more for its shares, increasing its value to current investors.

A healthy EPS is what?

What makes a good EPS is a question that has no clear solution. When comparing businesses, it is beneficial to pay special attention to how EPS is trending and how it compares to rival companies' earnings. Keep in mind that higher EPS can imply expansion and rising stock prices.

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