The Ratio of Net Profit to the Number of Shares

question 4

Multiple Choice

The ratio of net profit to the number of shares of common stock outstanding is called the:

• A)equity earnings
• B)earnings per share
• C)earnings for profit
• D)stock-to-earnings ratio
• E)profitability index

---

Definitions:

Units Manufactured

The total number of units produced by a company in a specific period, reflecting the company's production volume.

Year

refers to a period of twelve months used for financial, business, and calendar purposes.

Ending Inventory

Ending inventory refers to the total value or quantity of unsold goods that a company holds at the end of an accounting period.

Cash Disbursements

The outflow of cash for expenses or investments, typically detailed in a financial planning or accounting report.