Calculate the earnings per share (EPS) for a company with a
net income of $60,000 and 10,000 outstanding shares.
Answer: EPS = Net Income / Number of Outstanding Shares
EPS = $60,000 / 10,000 = $6 per share
Calculate the debt to equity ratio for a company with total
debt of $80,000 and shareholders' equity of $120,000.
Answer: Debt to Equity Ratio = Total Debt / Shareholders'
Equity Debt to Equity Ratio = $80,000 / $120,000 = 0.67
Calculate the profit margin if a company's net income is
$40,000, and total revenue is $200,000.