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mmsb1078
Sep 17, 2007, 11:14 AM
A company earns $600,000 after taxes in 2006 w/ 300,000 shares of outstanding stock. On 1/1/07 they issued 40,000 new shares, earnings increased by 25% after taxes.

A) compute earnings per share for 2006 and 2007.

CaptainForest
Sep 18, 2007, 12:27 AM
What do you think the answers are?

Make an attempt, then we will assist you.

tdjohnson
Mar 18, 2008, 09:40 AM
Compute earnings per share for the year 2007 600,000/300,00 = $2 per share
Compute earnings per share for the year 2007 150,000/40,000 = $3.75 per share