Amber, Inc. provides the following information for 2019: Net income $ 330 comma 000 Market price per share of common stock $ 60 per share Dividends paid $ 180 comma 000 Common stock outstanding at Jan. 1, 2019 160 comma 000 shares Common stock outstanding at Dec. 31, 2019 210 comma 000 shares The company has no preferred stock outstanding. Calculate the earnings per share for 2019. (Round your answer to two decimal places.)

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andromache andromache · Answer 1 · 2019-09-27T14:07:19+02:00

Answer:

The earnings per share for 2019 is $1.78

Explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income) ÷ (weighted number of outstanding shares)

where,

Net income = $330,000

Weighted number of outstanding shares = (Beginning balance of common stock + ending balance of common stock) ÷ 2

= (160,000 shares + 210,000 shares) ÷ 2

= 185,000 shares

Now put these values to the above formula

So, the value would equal to

= $330,000 ÷ 185,000 shares

= $1.78 per share