Earnings per share is
A) operating profit divided by number of shares outstanding.
B) net income divided by number of shares outstanding.
C) net income divided by stockholders' equity.
D) net income minus preferred dividends divided by number of shares outstanding.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by subtracting preferred dividends paid from net income and then dividing by the number of shares outstanding. This formula is represented by D in the given options.

Earnings Per Share Is