When Computing Basic EPS, the Numerator Includes Net Income Minus

question 83

Multiple Choice

When computing basic EPS, the numerator includes net income minus the ________.

• A) present value of stock options
• B) current year preferred dividends paid and current year preferred dividends in arrears
• C) cost of interest paid on bonds, net of tax
• D) cash paid for dividends during the year

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Definitions:

Expand

In mathematics, to expand an expression means to simplify it by distributing and combining like terms.

Properties

Characteristics or attributes that help define mathematical operations or objects.

Logarithms

The power to which a base, usually 10 or e, needs to be elevated to result in a specific number.

Condense

To condense means to make something denser or more concentrated by reducing its volume or content without losing essential elements.