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    slwakefield's Avatar
    slwakefield Posts: 2, Reputation: 1
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    #1

    Sep 20, 2011, 05:42 AM
    Retained Earnings
    Quantum Technology had $640,000 of retained earnings on Dec 31, 2010. The company paid common dividends of 30,000 in 2010 and had retained earnings of $500,000 on Dec 31, 2009. How much did Quantum Technology earn during 2010, and what would earnings per share be if 40,000 shares of common stock were outstanding?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    Sep 20, 2011, 07:26 AM
    First you will have to figure out what your net income was during the year. Hint use your beginning and ending retained earnings as well as your dividends.

    Once you calculate your net income for the year you simply divide that amount by your shares outsting to get your EPS (Earnings Per Share).
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