The major forces behind earnings per share are
A)return on assets and total asset value.
B)gross revenue and the stock price.
C)growth and the number of shares outstanding.
D)net income and the number of shares outstanding.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of shares outstanding. So, the major forces behind EPS are the net income and the number of shares outstanding. Growth may also have an impact on EPS, but it is indirectly related to net income and number of shares outstanding. Gross revenue and stock price are not direct factors affecting EPS. Return on assets and total asset value are also not directly related to EPS.

The Major Forces Behind Earnings Per Share Are