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calculating market value ratios that wich corp had additions to retained earnings for the year just ended of $375000. the firm paid out $175000 is cash dividends and it has ended total equity of $4.8 million. if the company currently has 145000 shares of common stock outstanding what are earning per share? Search Results Web results find the answer

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Answer: $3.79

Explanation:

Retained earnings are the earnings that won't be paid out but will be reinvested. The formula for calculating earnings per share is:

= Net income/Outstanding shares

To solve further, we have to calculate the net income first. This will be the sum of the retained earnings and dividends that was paid. This will be:

= $375,000 + $175,000

= $550,000

Retained earnings will now be:

= Net income/Outstanding shares

= 550,000/145,000

= $3.79

The retained earnings is $3.79

Calculating market value ratios that which corp had additions to retained earnings :

Formula :

Earnings per Share:

  • Earnings per Share= Net income/Outstanding shares
  • Earnings per Share= $375,000 + $175,000
  • Earnings per Share= $550,000

Retained Earnings:

  • Retained earnings = Net income/Outstanding shares
  • Retained earnings= 550,000/145,000
  • Retained earnings= $3.79

The retained earnings are $3.79

The Retained earnings are the earnings that won't be paid out but will be reinvested.  

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