Calculating Earnings Per Share

mcdowell07 | 20:50 Sun 18th Jan 2009 | Business & Finance

2 Answers

after tax earnings of $800,000 in the year 2008 with 200,000 shares of common stock outstanding. On January 1, 2009, the firm issued 50,000 new shares. Earnings after taxes increased by 30%. How is earnings per share for 2008 calculated? And how is EPS calculated for 2009?

Why should we pay??????????

State Pension Increase 2009

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factor-fiction

I'm no expert but it seems all the info you need is in the homework question.

2008 earnings divided by number of shares= $4 a share

2009 earnings = $800000 + 30%= $1040000. Divide this by new number of shares (250,000)= $4.16 earnings per share.

Do you agree mcdowell?

Karllavery

Please read the article in the link attached. It will give you the answer you are looking for and possibly some answers you will not be too keen on.

http://www.karl-lavery.co.uk/index.php?option= com_content&task=view&id=40&Itemid=28

Regards

Karl Lavery

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