The ratio that uses weighted-average number of shares of common stock outstanding in the denominator is the:
A)earnings per share.
B)gross profit percentage.
C)leverage ratio.
D)current ratio.

Question

Quizplus · Accepted Answer

The ratio that uses weighted-average number of shares of common stock outstanding in the denominator is the earnings per share (EPS), which is calculated by dividing the net income by the weighted-average number of shares outstanding during the period.

The Ratio That Uses Weighted-Average Number of Shares of Common