Asked by
Sawyer Ernsbarger
on Nov 08, 2024Verified
Earnings per share is equal to:
A) Net income divided by the total number of shares outstanding.
B) Net income divided by the par value of common stock.
C) Gross income multiplied by the par value of common stock.
D) Operating income divided by the par value of common stock.
E) Net income divided by total stockholders' equity.
Earnings Per Share
Earnings per share (EPS) is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.
Net Income
The amount of profit a company has left over after all expenses and taxes are deducted from total revenue.
Shares Outstanding
The total number of a company's shares of stock that are owned by shareholders, including restricted shares owned by the company’s officers and insiders as well as those held by the public.
- Acquire knowledge on the fundamentals of earnings per share and what impacts it.
Verified Answer
SD
Learning Objectives
- Acquire knowledge on the fundamentals of earnings per share and what impacts it.