Earnings per share is calculated by comparing an entity's:
A) revenue with the number of ordinary shares it has on issue
B) profit with the number of shareholders
C) profit with the number of ordinary shares it has on issue
D) revenue with the number of shareholders

Question

Quizplus · Accepted Answer

Earnings per share is a financial ratio that measures the amount of profit earned by each share of an entity's common stock. It is calculated by dividing the entity's net profit after taxes by the number of ordinary shares it has on issue. Therefore, the correct choice is C - profit with the number of ordinary shares it has on issue.

Earnings Per Share Is Calculated by Comparing an Entity's