Which ratio is a measure of the profit available to common shareholders on each share of common stock outstanding?
A)Price-earnings ratio
B)Earnings per share
C)Return on total assets
D)Return on common stockholders' equity

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income available to common shareholders by the number of outstanding shares of common stock. It provides a measure of the amount of profit that is available to each share of common stock outstanding.

Which Ratio Is a Measure of the Profit Available to Common