The financial ratio obtained by dividing net income after taxes by the number of shares of common stock outstanding is the _____.
A) working capital
B) return on owners' equity
C) current ratio
D) earnings per share
E) return on sales ratio

Question

Quizplus · Accepted Answer

The financial ratio obtained by dividing net income after taxes by the number of shares of common stock outstanding is the earnings per share (EPS). This metric indicates the amount of net income generated per share of ownership in the company.

The Financial Ratio Obtained by Dividing Net Income After Taxes