How Would Consolidated Earnings Per Share Be Calculated If the Subsidiary

question 101

Multiple Choice

How would consolidated earnings per share be calculated if the subsidiary has no convertible securities or warrants?

• A) Parent's earnings per share plus subsidiary's earnings per share.
• B) Parent's net income divided by parent's number of shares outstanding.
• C) Consolidated net income divided by parent's number of shares outstanding.
• D) Average of parent's earnings per share and subsidiary's earnings per share.
• E) Consolidated income divided by total number of shares outstanding for the parent and subsidiary.

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Definitions:

-osis

A suffix used in medical terminology to denote a condition, disease, or increase.

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A suffix employed in medical terms to indicate the inflammation of a tissue or organ.

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A high-pitched sound produced by air moving through narrowed respiratory airways, often heard in asthmatic conditions.

Cheyne-Stokes

A pattern of breathing characterized by a gradual increase in the depth of breathing followed by a decrease, resulting in temporary stoppages of breathing; often associated with serious illness.