Reference no: EM133112029

Question - Minden Co. has current assets of $180,000 (cash, $20,000; accounts receivable, $70,000; inventory, $90,000), and long-term assets that had cost $400,000, with amortization to date of $180,000. Sales were $500,000, and the operating profit was $50,000. The tax was $20,000 and the interest paid was $10,000. A dividend of $10,000 was paid to the common shareholders. There are 1,000 shares in the issue. Determine the Minden Co.'s earnings per share?

a. $2

b. $15

c. $1

d. $10

e. $20