Which option is NOT a factor in calculating Earnings per share?

In calculating Earnings per Share (EPS), the primary factors considered are net income and outstanding shares. Net income represents the profit available to shareholders, while outstanding shares is the total number of shares currently held by shareholders. The formula for EPS is straightforward: it is calculated by dividing the net income by the number of outstanding shares.

The market price per share does not play a role in this calculation, as EPS focuses solely on profitability in relation to the number of shares, rather than the market valuation of those shares. Federal income tax also does not directly factor into the EPS calculation, although it influences net income; EPS is calculated after tax considerations have been accounted for in the net income figure. Therefore, the market price per share is not relevant to the computation of EPS, making it the correct choice for this question.