Financial information for Accessories Unlimited includes the following selected data: Net income (in millions) $ 150 Shares outstanding (in millions) 300 Stock price $ 20.00 What is the company's earnings per share?

The answer is 0.5

Explanation:

Earnings per share is a measure of profitability. It is a way of assigning the profit to each outstanding shares i.e how much a company's profit goes to each outstanding shares.

It is calculated by taking net earnings or net income as the numerator and number of outstanding shares as d denominator i.e net income ÷ number of outstanding shares.

Net income - $150 million

Outstanding shares - 300 million shares.

Therefore, Earnings per Share (EPS) is:

($150million/300million shares)

$0.5

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