Earnings per share is computed on the basis of:

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Earnings per share is calculated by dividing net income by the weighted average of the number of common shares outstanding during the year. This method takes into account any changes in the number of shares outstanding during the year, which can affect the overall EPS calculation. EPS is not calculated based on the number of preferred shares outstanding, as these shares typically have different rights and privileges than common shares. EPS is also not calculated based solely on the number of shares outstanding at the end of the year, as this would not reflect any changes that occurred during the year.

Earnings Per Share Is Computed on the Basis Of