The number of shares authorized a company has will affect its earnings per share ratio.

Name: The number of shares authorized a company has will affect its earnings per share ratio.
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Question

Quizplus · Accepted Answer

The number of shares authorized by a company has no direct impact on its earnings per share ratio. Earnings per share is calculated by dividing the company's net income by its outstanding shares of common stock. The number of authorized shares does not impact this calculation, only the number of outstanding shares.

The Number of Shares Authorized a Company Has Will Affect