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Earnings Per Share Is Calculated by Dividing the Profit Available

question 128

True/False

Earnings per share is calculated by dividing the profit available to common shareholders by the number of common shares issued at year end.


Definitions:

Corporation

A legal entity that is distinct and separate from its owners, capable of owning property, incurring debt, and being sued or suing.

Stockholder

An individual or entity that owns shares in a publicly traded corporation, making them partial owners of the company.

B Corporation

A B Corporation is a certification for businesses that meet high standards of social and environmental performance, accountability, and transparency.

Water Purification

The process of removing undesirable chemicals, biological contaminants, and suspended solids from contaminated water to make it safe for drinking.

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