Which of the Following Is Correct Regarding Earnings Per Share

question 40

Multiple Choice

Which of the following is correct regarding earnings per share (EPS) ?

• A) If preferred stock is outstanding, dividends declared on the preferred stock are always deducted from net income in calculating EPS.
• B) EPS can never be negative.
• C) If income from continuing operations is less than zero, potentially dilutive securities are anti-dilutive.
• D) All issues of convertible to common stock must be included in the calculation of diluted EPS.

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Definitions:

Economic Growth

Growth in an economy's goods and services production over a specific period, often assessed through the Gross Domestic Product.

IMF

The International Monetary Fund (IMF) is an international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations to ensure that trade flows as smoothly, predictably, and freely as possible.

World Bank

The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects aimed at reducing poverty and supporting development.