alleryStart learning →EBIT 500,000, interest 100,000, tax 40%, 60,000 shares. What is EPS?
A4.00
B6.67
C8.33
D3.33
Answer & Solution
Correct answer: A. 4.00
Profit before tax 400,000 less 40% tax leaves 240,000, and 240,000 / 60,000 is 4.00.
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