Earnings per share is equal to

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income of a company by the total number of outstanding shares of its stock. Therefore, option B is the correct answer, as it directly divides the net income by total shares of capital stock to arrive at EPS. Option A and C are incorrect as they use total revenues and total expenses respectively, which are not relevant to calculating EPS. Option D is incorrect as it divides net income by retained earnings, which is not meaningful as retained earnings are already a part of net income.

Earnings Per Share Is Equal to