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    Calculating EPS of Sosa Diet Supplements

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    Sosa Diet Supplements had earnings after taxes 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. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent.

    a. Compute earnings per share for the year 2008.
    b. Compute earnings per share for the year 2009.

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    https://brainmass.com/economics/finance/calculating-eps-of-sosa-diet-supplements-273357

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    Solution:

    a. Compute earnings per share for the year 2008.

    Number of shares outstanding in ...

    Solution Summary

    Solution describes the steps to calculate EPS in 2008 and 2009.

    $2.19