The numerator in the earnings per share calculation is
A) only the amount available to common shareholders.
B) net income attributable to common shareholders.
C) net income minus declared preferred stock dividends.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The numerator in the earnings per share (EPS) calculation includes all of these components: the amount available to common shareholders, net income attributable to common shareholders, and net income minus declared preferred stock dividends. These elements are considered to ensure that the EPS reflects the earnings available to common shareholders after accounting for obligations to preferred shareholders.

The Numerator in the Earnings Per Share Calculation Is