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Which of the Following Statements Is Not True Regarding Earnings

Question 107

Multiple Choice

Which of the following statements is not true regarding earnings per share?


A) Earnings per share is useful in comparing earnings performance across companies at the same point in time.
B) Earnings per share is useful in comparing earnings performance for the same company over time.
C) Earnings per share is calculated as net income minus dividends on preferred stock all divided by the average number of common shares outstanding.
D) Earnings per share is forecasted by financial analysts.

Correct Answer:

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