What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?
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A. B. C. D.C
To calculate the earnings per share (EPS), you need to divide the company's after-tax profits by the number of common shares outstanding. In this case, the company earned $100,000 in after-tax profits and has 200,000 common shares outstanding.
EPS = After-tax profits / Number of common shares outstanding
EPS = $100,000 / 200,000
EPS = $0.50
Therefore, the earnings per share (EPS) for the company is $0.50.
The correct answer is C. $0.50.