Question

Murray Company reports net income of $731,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 340,000 shares. Compute its basic earnings per share.

Answer 1

Answer:

$2.15 Per share

Explanation:

The earnings per share (EPS) shows the earning per each common shares. It can be calculated as the below

EPS= (Net Income- Preferred Dividend) / Weighted Average common share outstanding

EPS= $731,000 - $0 / $340,000

EPS= $731,000 / $340,000

EPS= $2.15 Per share

The basic earnings per share is $2.15