Which of the Following Is the Formula for Computing Earnings

question 123

Multiple Choice

Which of the following is the formula for computing earnings per share of common stock?

• A)(Net income + interest expense)/ average total assets
• B)Net income/net sales
• C)(Net income - preferred dividends)/ number of shares of outstanding common stock
• D)(Net income - preferred dividends)/ average common stockholders' equity

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Definitions:

Muscle Fiber

A single muscle cell, known for its elongated shape, that contracts to produce movement.

Potential Difference

The difference in electric potential between two points, resulting in the flow of current when a circuit is closed.

Permeability

A measure of how easily liquids or gases can pass through a material or membrane.

Electrical Properties

Characteristics of materials or systems that define their behavior in the presence of electric fields, including conductivity, resistivity, and dielectric constant.