Suppose the following information (in millions of dollars) is available for Limited Brands for a recent year: sales revenue $8,780, net income $153, preferred dividend $0, and weighted-average common shares outstanding 300 million. Compute the earnings per share for Limited Brands.

$0.51 million

Explanation:

Earnings per share is calculated as ;

Net income - preferred dividends/ Weighted average common shares outstanding.

Given that;

Net income = $153 m

Preferred dividends = 0$

Weighted average common shares outstanding = $300 m

Therefore,

Earnings per share = $153 - $0 / $300

= $0.51 million

107x106 is the answer

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