In: Finance
MECCS Inc. has sales of $730000, cost of goods sold of $310000 and general and administrative expenses of $200000. Interest expense is $60000, dividends paid is $15000, and depreciation expense is $80000. The tax rate is 21 percent and there are 9400 shares of stock outstanding. what is the earnings per share?
5.46
7.71
5.13
6.72
Computation of Earning per share (EPS) = Net income/Number of stock outstanding | |||
a | Sales | $ 730,000 | |
b | cost of goods sold | $ 310,000 | |
c | general and administrative expenses | $ 200,000 | |
d | Interest expense | $ 60,000 | |
e | depreciation expense | $ 80,000 | |
f=a-b-c-d-e | Earning before tax | $ 80,000 | |
g | Tax @ 21% | $ 16,800 | |
h=f-g | Net income | $ 63,200 | |
i | Number of stock outstanding | 9400 | |
j=h/i | EPS= | $ 6.72 | |
Ans = | $ 6.72 |