Computation of earnings per share
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Rockwell paper company had earnings after taxes of $580,000 in the year 2003 with 400,000 shares of stock outstanding. On January 1, 2004, the firm issued 35,000 new shares. Because of the proceeds from these new shares and other operating improvements. earnings after taxes increased by 25 percent.
a) Compute earnings per share for the year 2003.
b) Compute earnings per share for the year 2004.
I did the problem, but I would like to check it against another problem to see if my figures are correct.
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This explains the steps of Computation of earnings per share by taking an example.
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Earnings per share= Earnings after taxes/Shares of stock outstanding
a) Compute earnings per share for the year ...
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