Earnings per share (EPS) is defined as the net profit (net income dividends on preferred shares) for a company divided number of stock shares outstanding (it's actually slightly more complex than that, but this will do for our purposes and is generally correct). 1. Sigma-Harding, Inc. has net profit of $375.4 million and their shares outstanding are 492.76 million. What were their earnings per share? 2. If Sigma-Harding issues additional shares of stock, what will happen to its EPS? 3. Sigma-Harding has a two for one stock split, meaning two shares of stock are issued for every share outstanding. What is the company's new EPS? The Price / Earnings Ratio (P/E) is defined as the price per stock share divided by the EPS. 4. Sigma-Harding has a price per share of $63.67. Based on the earnings quoted above and the information in question 1, what is its P/E