How would consolidated earnings per share be calculated if the subsidiary has no convertible securities or warrants?
A) Parent's earnings per share plus subsidiary's earnings per share.
B) Parent's net income divided by parent's number of shares outstanding.
C) Consolidated net income divided by parent's number of shares outstanding.
D) Average of parent's earnings per share and subsidiary's earnings per share.
E) Consolidated income divided by total number of shares outstanding for the parent and subsidiary.

Question

Quizplus · Accepted Answer

Consolidated earnings per share is calculated by dividing the consolidated net income by the parent's number of shares outstanding, as the subsidiary's shares are not considered separately in the calculation.

How Would Consolidated Earnings Per Share Be Calculated If the Subsidiary