For a Firm with a Simple Capital Structure, EPS Is

question 62

Multiple Choice

For a firm with a simple capital structure, EPS is:

• A) earnings available to common and preferred shareholders divided by the weighted-average number of common and preferred shares outstanding.
• B) earnings available to common and preferred shareholders divided by the number of common and preferred shares outstanding at the end of the reporting period.
• C) reported for both basic and diluted EPS.
• D) reported for both earnings before discontinued operations and net income.

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Definitions:

Rebate

A return of part of the original payment for some service or merchandise, serving as a discount or reduction after the purchase.

Void Contract

refers to an agreement with no legal effect from the beginning due to an illegal purpose or violation of a mandatory statute.

Voidable Contract

A legal agreement that is valid and enforceable on its face, but can be declared void by one or more of the parties for certain legal reasons.

Contract Formation

The process by which parties' agreement reaches the point where a legally binding contract is established.