Assume IMM has 200,000 as retained profit and distributed 100,000 as dividends

Finance Aug 13, 2020

Assume IMM has 200,000 as retained profit and distributed 100,000 as dividends. The company has 150,000 outstanding shares. What is the company earnings per share? Select one: O a. $1.5 O b. $2 O c. $1 O d. $0.5

Expert Solution

Earning per share = Net profit / Number of shares outstanding

Net profit = Retained earning + Dividend

= 200,000 + 100,000

= 300,000

So, Earning per share = 300,000 / 150,000

Earning per share = 2.00

Option B is the correct answer.

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