Ace company had 200,000 shares of common stock outstanding on december 31, 2018. during the year 2019, the company issued 8,000 shares on may 1 and retired 14,000 shares on october 31. for the year 2019, ace company reported net income of $249,690 after a loss from discontinued operations of $40,600 (net of tax). instructions what earnings per share data should be reported at the bottom of its income statemen

Ace company has EPS of $1.43 per share without considering the loss from discontinued operations but the EPS dropped to $1.23 per share the losses were factored in.

Please find attached for EPS calculation.

Explanation:

Earnings Per Share are the earnings attributable to shareholders after interest on loans and taxes have been settled. EPS measures the company dividends capacity as well as the profit retention strength.

EPS is one metric investment analysts look at when deciding stocks to invest in and it is a pointer to financial wellness of a business which gives an insight into the performance of such stocks in future.The higher the EPS, the higher the price of the stock in the market.

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