The value of each share whether market or book value is 30

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EPS Calculation. The balance sheet of the Delta Corporation shows a capital structure as follows:

Current liabilities

$ 0

Bonds (6% interest)

100,000

Common stock

900,000

Total claims

$1,000,000

Its rate of return before interest and taxes on its assets of $1 million is 20 percent. The value of each share (whether market or book value) is $30. The firm is in the 50 percent tax bracket. Calculate its earnings per share.

Reference no: EM13573824

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