Earnings per share are:
A) are those earnings that belong to the common shareholders divided by the number of shares outstanding.
B) are those earnings calculated before preferred stock dividends are deducted divided by the number of shares outstanding.
C) are the change in retained earnings divided by the number of shareholders.
D) are earnings available to all shareholders divided by the number of preferred shares outstanding.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) are calculated by taking the portion of a company's profit allocated to each outstanding share of common stock, which essentially means dividing the earnings that belong to common shareholders by the number of shares outstanding.

Earnings Per Share Are