In its most basic form,the earnings per share ratio is calculated as:
A)dividends paid on common stock divided by the average number of outstanding common shares.
B)the difference between net income and preferred dividends divided by the average number of outstanding common shares.
C)total dividends paid divided by the average number of total stock shares.
D)net income divided by average stockholders' equity.

Question

Quizplus · Accepted Answer

EPS = (Net income − Preferred dividends)÷ Average Common Shares Outstanding

In Its Most Basic Form,the Earnings Per Share Ratio Is