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                 ...

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.