In computing earnings per share, common stock shares are weighted according to the proportion of stockholders' equity those shares represent.

Name: In computing earnings per share, common stock shares are weighted according to the proportion of stockholders' equity those shares represent.
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Earnings per share (EPS) calculations weight common stock shares based on the time period they have been outstanding during the fiscal period, not the proportion of stockholders' equity those shares represent.

In Computing Earnings Per Share, Common Stock Shares Are Weighted