If a company has issued only one class of stock, the earnings per share is determined by dividing net income by the number of shares outstanding.

Question

Quizplus · Accepted Answer

This is because there is no need to factor in different classes of stock that have different dividend or voting rights. The basic formula for calculating earnings per share (EPS) is dividing the net income by the number of shares outstanding.

If a Company Has Issued Only One Class of Stock