Question

Kirova Company has provided the following information: Number of issued common shares, 990,000 Net income, $1,436,500 Number of authorized common shares, 1,000,000 Weighted average number of outstanding common shares, 845,000 Number of treasury shares, 145,000 What is Kirova's earnings per share (EPS)

Answer 1

Answer:

$1.7

Explanation:

From the question above Kirova company recorder the following information

Number of issued common shares is 990,000

Net income is $1,436,500

Number of authorized common share is 1,000,000

Weighted average income of outstanding common shares is 845,000

Number of treasury shares is 145,000

The formular to calculate the earning per share is

= Net income/Outstanding shares

Net income= $1,436,500

Outstanding shares= number of issued common shares- number of treasury shares

= 990,000-145,000

= 845,000

Therefore, the earnings per share can be calculated as follows

= 1,436,500/845,000

= $1.7

Hence Kirova's earning per share is $1.7