Which One of the Following Statements Regarding Earnings Per Share

question 32

Multiple Choice

Which one of the following statements regarding earnings per share (EPS) is true?

• A)The EPS ratio is important because it signals the ability of the company to pay future dividends,which investors factor into the stock price.
• B)Earnings per share is generally reported in the balance sheet under stockholders' equity.
• C)Earnings per share is the best way to compare the performance of different companies.
• D)EPS,in its basic form,is calculated by dividing net income by the average number of all shares issued.