The ratio of net profit to the number of shares of common stock outstanding is called the:
A)equity earnings
B)earnings per share
C)earnings for profit
D)stock-to-earnings ratio
E)profitability index

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is the financial ratio that divides the net profit of a company by the number of its outstanding shares of common stock, providing a measure of the company's profitability on a per-share basis.

The Ratio of Net Profit to the Number of Shares