Questions
BFIL001 Week 8 Practice Quiz
Single choice
Omega Limited has net income of $28 million, earnings before tax of $40 million, earnings before interest and tax of $70 million, gross profit of $100 million, sales of $400 million, assets of $500 million, current liabilities of $50 million, shareholders’ equity of $150 million, dividends of $15 million, shares outstanding of 100 million and share price of $3 per share. Calculate earnings per share?
Options
A.0.28/ share
B.0.15/ share
C.0.40/ share
D.0.13/ share
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
Let's break down the problem and compute the key figure needed: earnings per share (EPS).
First, identify the components: net income is given as $28 million and shares outstanding are 100 million. EPS is defined as net income divided by the number of outstanding sh......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
CANADIAN TIRE- Part 8 of 11 Use two decimal points. Do not add percentage (%), or times (X) with the number. Calculate EPS in 2020 [A]
Omega Limited has net income of $28 million, earnings before tax of $40 million, earnings before interest and tax of $70 million, gross profit of $100 million, sales of $400 million, assets of $500 million, current liabilities of $50 million, shareholders’ equity of $150 million, dividends of $15 million, shares outstanding of 100 million and share price of $3 per share. Calculate earnings per share?
Ben Ten Limited (BTL) is a new company and management are trying to decide on a financing structure. They want to raise $10,000,000. They were offered the following option: Fund 60% of the firm with debt and the balance with ordinary shares at an issue price of $2 per share. BTL has been advised that the cost of debt finance would be 3.65%pa due to its relative risk. The current Earnings Before Interest and Tax (EBIT) is $6,000,000 The company tax rate is 30%. Calculate the Earnings Per Share of this option (Round your answer to 2 decimal places. For example, if your answer is 0.66666666 -> Enter your answer as 0.67)
Ben Ten Limited (BTL) is a new company and management are trying to decide on a financing structure. They want to raise $10,000,000. They were offered the following option: Fund 60% of the firm with debt and the balance with ordinary shares at an issue price of $2 per share. BTL has been advised that the cost of debt finance would be 4.84%pa due to its relative risk. The current Earnings Before Interest and Tax (EBIT) is $2,000,000 The company tax rate is 30%. Calculate the Earnings Per Share of this option (Round your answer to 2 decimal places. For example, if your answer is 0.66666666 -> Enter your answer as 0.67)
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!