I have started teaching myself basic business stuff and have a question regarding calculating earnings per share.
Q:
[bunch of numbers for revenue, expenses...]
At the beginning of year: 80,000 shares outstanding.
In June, 20,000 shares sold for $8/share.
What is the EPS?
I understand EPS = net income / time average of total shares outstanding.
However I have two questions:
- Is the money from the shares sold added to net income?
- Is the total number of shares after the sale of shares 100,000?