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# 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
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?

#### Solution Preview

EPS = Net Income/Number of shares

Net Income is
Total sales = 2,700,000
Total expense
Cost of goods sold............................... \$1.2 million ...

#### Solution Summary

The solution explains how to calculate the earnings per share using a very brief calculation.

\$2.19