Question

Murray Company reports net income of $687,500 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 250,000 shares. Compute its basic earnings per share.

Answer 1

Answer:

Its basic earnings per share is $2.75

Explanation:

Basic Earnings Per Share (BEPS) = Earnings Attributable to Holders of Common Stocks ÷ Weighted Average of Common Stocks Outstanding

                                                      = $687,500 ÷ 250,000 shares

                                                      = $2.75