Basic earnings per share (EPS) is determined using:

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Basic earnings per share (EPS) is determined using the number of outstanding common shares. This is because outstanding shares represent the actual number of shares that are currently held by investors and are entitled to receive a portion of the company's earnings. Authorized shares refer to the maximum number of shares a company is allowed to issue, issued shares refer to the total number of shares that have been issued by the company, and treasury shares refer to shares that have been repurchased by the company and are not currently outstanding. Preferred shares are not relevant for calculating basic EPS, as their dividends are typically calculated separately from those of common shares.

Basic Earnings Per Share (EPS) Is Determined Using