berkshire hathaway class b stock has 2.45b shares. the company had a profit of $500m. the current share…

berkshire hathaway class b stock has 2.45b shares. the company had a profit of $500m. the current share price is $206.22. what is berkshire bs eps? explain your calculation. $1.705 1010.88 29.50 $0.204

berkshire hathaway class b stock has 2.45b shares. the company had a profit of $500m. the current share price is $206.22. what is berkshire bs eps? explain your calculation. $1.705 1010.88 29.50 $0.204

Answer

Explanation:

Step1: Recall EPS formula

EPS (Earnings - Per - Share) is calculated as $\text{EPS}=\frac{\text{Net Income}}{\text{Number of Outstanding Shares}}$.

Step2: Convert values to standard units

The net income (profit) is $500M = 500\times10^{6}$, and the number of outstanding shares is $2.45B=2.45\times 10^{9}$.

Step3: Calculate EPS

$\text{EPS}=\frac{500\times 10^{6}}{2.45\times 10^{9}}=\frac{500}{2.45\times10^{3}}=\frac{500}{2450}\approx0.204$.

Answer:

D. $0.204$