Earnings per share is an indication of how much
A)the company paid as dividends for each share of stock held by stockholders.
B)the company earned for each share of outstanding common and preferred stock.
C)the company earned for each share of outstanding common stock.
D)cash the company has for each share of all outstanding stock.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing a company's net income by the total number of shares of outstanding common stock. Therefore, it represents the amount of earnings that can be attributed to each share of common stock. EPS does not take into account any dividends paid or cash reserves held by the company.

Earnings Per Share Is an Indication of How Much