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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