Which of the following is the numerator of the earnings per share formula?

Question

Quizplus · Accepted Answer

The earnings per share (EPS) formula calculates the portion of a company's profit allocated to each outstanding share of common stock, and its numerator is net income minus preferred dividends. This adjustment is made to ensure that the calculation reflects the earnings available to common shareholders, as preferred dividends are typically fixed and must be paid out before any earnings can be distributed to common shareholders.

Which of the Following Is the Numerator of the Earnings