When Computing Basic EPS,the Numerator Includes Net Income Minus the ________

question 27

Multiple Choice

When computing basic EPS,the numerator includes net income minus the ________.

• A)present value of stock options
• B)preferred dividends for cumulative preferred stock
• C)cost of interest paid on bonds,net of tax
• D)cash paid for dividends during the year

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, used to deflate nominal GDP to real GDP.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth over time.

Percentage Change

A mathematical calculation to determine the degree of change over time, expressed as a percentage.

Imports

Goods or services brought into one country from another, contributing to the supply in the domestic market and affecting the nation's trade balance.