Makers Corp. had additions to retained earnings for the year just ended of $141,000. The firm paid out $189,000 in cash dividends, and it has ending total equity of $4.94 million. The company currently has 120,000 shares of common stock outstanding. a. What are earnings per share

the earning per share is $2.75 per share

Explanation:

The computation of the earnings per share is shown below:

Earning per share is

= (Addition to Retained earnings + Dividends) ÷ (No. of shares)

= ($141,000 + $189,000) ÷ (120,000)

= $2.75 per share

Hence, the earning per share is $2.75 per share

We simply applied the above formula

And, the same is to be considered

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