Asked by
Latrecia Smith
on Nov 18, 2024Verified
Earnings per share
A) is the earnings available to common shareholders
B) must be reported by public company
C) helps compare companies of different sizes
D) all of the answers are correct
Earnings Per Share
A financial ratio that measures the amount of a company’s profit allocated to each outstanding share of common stock, indicating the company's profitability.
Common Shareholders
Individuals or entities that own common stock in a corporation, thus holding a share of the ownership and typically having voting rights.
Public Company
A company whose shares are traded freely on a stock exchange, subject to regulatory and reporting requirements.
- Comprehend the methodology for determining earnings per share (EPS) and its consequences.
Verified Answer
CS
Learning Objectives
- Comprehend the methodology for determining earnings per share (EPS) and its consequences.