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The profit before tax and the profit after tax of Company Alpha for the year ended 31 December 2019 are 18m and 13m, respectively. Throughout

The profit before tax and the profit after tax of Company Alpha for the year ended 31 December 2019 are 18m and 13m, respectively. Throughout 2019, there were 33 million shares issued.

The profit before tax and the profit after tax of Company Gamma for the year ended 31 December 2019 are 32m and 24m, respectively. Throughout 2019, there were 22 million shares issued.

Which of the two companies has the higher EPS (earnings per share)?

Select one:

a. Company Alpha

b. Company Gamma

c. Its impossible to tell

d. Both companies are equally good

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