Consolidated Basic Earnings Per Share (BEPS) Is Calculated by Dividing

question 13

Multiple Choice

Consolidated Basic Earnings Per Share (BEPS) is calculated by dividing

• A)​consolidated net income by parent company outstanding stock.
• B)​consolidated net income by parent company outstanding stock and subsidiary outstanding stock.
• C)consolidated net income by parent company outstanding stock and subsidiary non-controlling outstanding stock.​
• D)​none of the above

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Definitions:

Mutually Exclusive

Situations or events that cannot occur at the same time—choosing one precludes the selection of the other.

Negative Net Present Value

A financial metric indicating that the present value of cash inflows is less than the present value of cash outflows, suggesting the investment is not financially viable.

Initial Cost

The upfront expense incurred to purchase an asset or to initiate a project.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.