Earnings Per Share is Calculated As

question 41

Multiple Choice

Earnings per share is calculated as:

• A) net income ÷ weighted average common shares outstanding.
• B) (net income - preferred dividends) ÷ average common stockholders' equity.
• C) weighted average common shares outstanding ÷ net income.
• D) average common stockholders' equity ÷ (net income - preferred dividends).
• E) operating income ÷ average common stockholders' equity.

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Definitions:

Global Firms

Businesses that operate and serve customers in multiple countries, integrating and adapting their operations and strategies worldwide.

Process Innovation

A strategy that focuses on improving or creating new processes within a company to enhance productivity and efficiency.

Software

Programs and operating information used by a computer to perform specific tasks.

Reverse Innovation

A strategy where goods or services are developed first for emerging markets, and then adapted for more developed ones.