All else held constant,the earnings per share will decrease as the:
A)net income increases.
B)number of shares outstanding increases.
C)total revenue of the firm increases.
D)tax rate decreases.
E)costs decrease.

Question

Quizplus · Accepted Answer

The earnings per share (EPS) is calculated by dividing net income by the number of shares outstanding. Therefore, if the number of shares outstanding increases, the EPS will decrease, assuming all else held constant.

All Else Held Constant,the Earnings Per Share Will Decrease as The