The Fitness Studio Incs 2015 income statement lists the foll

The Fitness Studio, Inc.\'s, 2015 income statement lists the following income and expenses: EBIT = $783,500, interest expense = $300,000, and taxes = $169,225. The firm has no preferred stock outstanding and 100,000 shares of common stock outstanding.

Calculate the 2015 earnings per share. (Round your answer to 2 decimal places.)

The Fitness Studio, Inc.\'s, 2015 income statement lists the following income and expenses: EBIT = $783,500, interest expense = $300,000, and taxes = $169,225. The firm has no preferred stock outstanding and 100,000 shares of common stock outstanding.

Calculate the 2015 earnings per share. (Round your answer to 2 decimal places.)

Solution

EBIT 783500 Less: Interest 300000 Earnings before tax 483500 Less: Tax 169225 Earnings after tax 314275 Lless: Preferred dividend 0 Earnings available for common stockholders 314275 Divide: Number of Common Stock outstanding 100,000 Earnings per share 3.143