Earnings per share are calculated by dividing
A) gross profit by average common shares outstanding.
B) (net income less preferred dividends) by average common shares outstanding.
C) net income by average common shares outstanding.
D) net sales by average common shares outstanding.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income available to common shareholders (net income minus preferred dividends) by the average number of common shares outstanding.

Earnings Per Share Are Calculated by Dividing