Earnings Per Share Is Calculated by Dividing

question 74

Multiple Choice

Earnings per share is 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.

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Definitions:

Z-scores

Standardized scores that measure the distance of a score from the mean, indicating how many standard deviations an element is from the mean.

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1.

Greater Than

A mathematical expression indicating that one quantity is larger than another.

Z-scores

Standardized scores that measure how many standard deviations a data point is from the mean, used for comparison across different data sets or variables.