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Calculating Earnings Per Share

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mcdowell07 | 19:50 Sun 18th Jan 2009 | Business & Finance
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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?
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Avatar Image 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?
20:24 Sun 18th Jan 2009
Avatar Image 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
08:10 Fri 03rd Apr 2009

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