Earnings per share is equal to:
A)net income divided by the total number of shares outstanding.
B)net income divided by the par value of the ordinary equity.
C)gross income multiplied by the par value of the ordinary equity.
D)operating income divided by the par value of the ordinary equity.
E)net income divided by total shareholders' equity.

Question

Quizplus · Accepted Answer

Earnings per share is calculated by dividing the net income of a company by the total number of shares outstanding. This gives the amount of per share earnings that can be attributed to each shareholder.

Earnings Per Share Is Equal To