Earnings Per Share Is Computed Using Which of the Following

question 73

Multiple Choice

Earnings per share is computed using which of the following measures?

• A)The weighted average of the number of common shares outstanding during the year.
• B)The weighted average of the number of preferred and common shares outstanding during the year.
• C)The number of common shares outstanding at the end of the year.
• D)The number of common and preferred shares outstanding at the end of the year.

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Definitions:

Utility-Maximizing

A principle or strategy of consumers making choices to achieve the highest overall level of satisfaction or utility from their available resources.

Inferior Good

An inferior good is a type of good for which demand decreases as the income of the individual increases, in contrast to a normal good.

Rental Housing

Properties available for rent to provide accommodation, usually on a monthly or yearly lease agreement.

Price-Consumption Curve

A curve in economics that shows the changes in an individual's consumption of two goods as the price of one good changes, holding the individual's utility level constant.