Earnings Per Share Are Calculated by Dividing

question 165

Multiple Choice

Earnings per share are calculated by dividing

• A) gross profit by average common shares outstanding.
• B) (net income less preferred dividends) by average common shares outstanding.
• C) net income by average common shares outstanding.
• D) net sales by average common shares outstanding.

---

Definitions:

Cleavage

The process of cell division in the early embryo, leading to the formation of a multicellular structure.

Vegetal Hemisphere

In biology, the lower half of an egg or embryo where the yolk and nutritive tissues are concentrated, opposite to the animal hemisphere.

Animal Hemisphere

The upper half of an egg (in many animals) where most of the cytoplasm is located, opposite the vegetal hemisphere.

Blastula

The blastula is an early stage of embryonic development in animals, characterized by a hollow sphere of cells following the morula stage.