Question

The annual report of Dennis Industries cited these primary earnings per common share for the past 5 years: $2.49, $1.04, $2.33, $4.68, and $3.47. a. What is the arithmetic mean primary earnings per share of common stock? (Round your answer to 2 decimal places.) b. What is the variance? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Answer 1

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The arithmetic mean primary EPS of common stock is :

a. the mean of the EPS of the 5 years

= $(2.49+1.04+2.33+4.68+3.47) / 5

= $2.80

b. the variance is basically the average of sum of square deviations from the mean

=( (2.49-2.8)^2 + (1.04-2.8)^2+(2.33-2.8)^2+(4.68-2.8)^2+(3.47-2.8)^2)/5

=$1.48