Determine earnings per share


Problem: A firm has 1.5 million shares outstanding. EBIT is $5 million and interest paid is $2 million. If the corporate tax rate is 35%, what is earnings per share?

a. $0.50

b. $0.95

c. $1.30

d. $1.70

e. $2.50

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Accounting Basics: Determine earnings per share
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