Which of the Following Mathematical Expressions Computes Earnings Per Share

question 44

Multiple Choice

Which of the following mathematical expressions computes earnings per share (EPS) ?

• A)Earnings per share = Net Income × Number of outstanding shares of common stock
• B)Earnings per share = (Net Income + Dividend Paid) ÷ Number of outstanding shares of common stock
• C)Earnings per share = Net Income ÷ Number of outstanding shares of common stock
• D)Earnings per share = (Net Income - Dividend Paid) ÷ Number of outstanding shares of common stock
• E)Earnings per share = (Net Income - Dividend Paid) × Number of outstanding shares of common stock

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