Nielson expects to generate net income of $20 million over the next year. Curren

Question

Nielson expects to generate net income of $20 million over the next year. Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share. Nielson's EPS is closest to __________.

       $2.00

       $2.30

       $2.50

       $2.90

Nielson expects to generate net income of $20 million over the next year. Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share. Nielson's EPS is closest to __________.

       $2.00

       $2.30

       $2.50

       $2.90

Explanation / Answer

Earnings Per share= Net Income / Number of Equity shares outstanding

= 20/8

=$2.5

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