How Are Earnings Per Share Calculated

question 72

Multiple Choice

How are earnings per share calculated?

• A) the net income of the firm, divided by the amount of capital invested by the owners
• B) the number of shares outstanding, divided by the value of owners' equity
• C) the net income of the firm less any preferred dividend payout, divided by the number of shares outstanding
• D) the number of shares outstanding, divided by the net income of the firm

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Definitions:

Myelencephalon

The posterior part of the brainstem, comprising the medulla oblongata, involved in regulating vital bodily functions.

Medulla Oblongata

A part of the brainstem involved in autonomic functions, such as breathing, heart rate, and blood pressure.

Telencephalon

The largest part of the brain, responsible for voluntary motor function, cognition, emotion, and sensory processing.

Cranial Nerve VII

Also known as the facial nerve, it controls the muscles of facial expression, convey taste sensations from the anterior two-thirds of the tongue, and supply the lacrimal and salivary glands.