For the Purpose of Calculating Earnings Per Share,the Denominator Is

question 12

Multiple Choice

For the purpose of calculating earnings per share,the denominator is:

• A) outstanding ordinary shares at balance date.
• B) weighted average number of fully paid ordinary shares.
• C) weighted average number of the sum fully paid ordinary shares and partly paid equivalents.
• D) outstanding ordinary shares at balance date and weighted average number of fully paid ordinary shares.
• E) All of the given answers.

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Definitions:

Profit-maximizing

The process of adjusting the production and sale of goods and services to achieve the highest possible profit.

Marginal Product

The additional output gained by adding one more unit of a specific input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Variable Input

An input whose quantity can be changed in the short term by a firm to adjust the level of output.