The denominator for the basic EPS calculation is the:
A)operating profit before tax
B)operating profit after tax
C)weighted average number of ordinary shares
D)number of ordinary share issued as at the end of the year

Question

Quizplus · Accepted Answer

The denominator for basic EPS is the weighted average number of ordinary shares, which takes into account any changes to the number of shares outstanding during the period. Options A and B are not relevant to EPS calculation, and option D only gives the number of shares outstanding at a specific point in time, which is not sufficient for EPS calculation.

The Denominator for the Basic EPS Calculation Is The