Homework answers / question archive / Earnings per share (EPS) is defined as the net profit (net income - dividends on preferred shares) for a company divided number of stock shares outstanding (it's actually slightly more complex than that, but this will do for our purposes and is generally correct)

Earnings per share (EPS) is defined as the net profit (net income - dividends on preferred shares) for a company divided number of stock shares outstanding (it's actually slightly more complex than that, but this will do for our purposes and is generally correct)

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Earnings per share (EPS) is defined as the net profit (net income - dividends on preferred shares) for a company divided number of stock shares outstanding (it's actually slightly more complex than that, but this will do for our purposes and is generally correct). 
1. Sigma-Harding, Inc. has net profit of $375.4 million and their shares outstanding are 492.76 million. What were their earnings per share? 
2. If Sigma-Harding issues additional shares of stock, what will happen to its EPS? 
3. Sigma-Harding has a two for one stock split, meaning two shares of stock are issued for every share outstanding. What is the company's new EPS? 
The Price / Earnings Ratio (P/E) is defined as the price per stock share divided by the EPS. 
4. Sigma-Harding has a price per share of $63.67. Based on the earnings quoted above and the information in question 1, what is its P/E?