a company has issued a total of 100000000 shares trading at 180 each on stock market . the company makes a post tax profit of 27000000 . what are the earnings per share expressed as a percentage of the share price?
+118673 Thanks Sir-Emo-Chappington :)
The trading value of shares is $${\mathtt{100\,000\,000}}{\mathtt{\,\times\,}}{\mathtt{180}} = {\mathtt{18\,000\,000\,000}}$$
Profit is 27000000
percent profit is $${\frac{{\mathtt{27\,000\,000}}}{{\mathtt{18\,000\,000\,000}}}}{\mathtt{\,\times\,}}{\mathtt{100}} = {\frac{{\mathtt{3}}}{{\mathtt{20}}}} = {\mathtt{0.15}}$$
That is 0.15% Just like Sir Emo found :))
+427 27,000,000 / 100,000,000
= 0.27 post-tax profit per share
0.27 / 180 = 0.0015 = 0.15%
The earnings are 0.15% of it's trading value.
+118673 Thanks Sir-Emo-Chappington :)
The trading value of shares is $${\mathtt{100\,000\,000}}{\mathtt{\,\times\,}}{\mathtt{180}} = {\mathtt{18\,000\,000\,000}}$$
Profit is 27000000
percent profit is $${\frac{{\mathtt{27\,000\,000}}}{{\mathtt{18\,000\,000\,000}}}}{\mathtt{\,\times\,}}{\mathtt{100}} = {\frac{{\mathtt{3}}}{{\mathtt{20}}}} = {\mathtt{0.15}}$$
That is 0.15% Just like Sir Emo found :))
