EPS using tax rate and expenses
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Use the information for Sports Baseballs, Inc.
Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:
Cost of goods sold............................... $1.2 million
Administrative expenses........................ $250,000
Marketing and selling expenses............... $175,000
Depreciation........................................ $500,000
Interest expense.................................. $200,000
Dividends paid..................................... $150,000
Suppose that Sports Baseball has 30,000 shares of stock. Assume a tax rate of 30%. What is the EPS figure?
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Solution Summary
The solution explains how to calculate the earnings per share using a very brief calculation.
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EPS = Net Income/Number of shares
Net Income is
Total sales = 2,700,000
Total expense
Cost of goods sold............................... $1.2 million ...
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