The Number of Shares Used in the Calculation of Earnings

question 43

Multiple Choice

The number of shares used in the calculation of earnings per share is:

• A) the number of ordinary and preference shares adjusted by a time-weighting factor which is the number of days in the reporting period that the shares are outstanding as a proportion of the total number of days in the period
• B) the number of preference shares adjusted by a time-weighting factor which is the number of days in the reporting period that the shares are outstanding as a proportion of the total number of days in the period
• C) the average of the number of ordinary shares outstanding at the beginning and end of the reporting period
• D) the number of ordinary shares adjusted by a time-weighting factor which is the number of days in the reporting period that the shares are outstanding as a proportion of the total number of days in the period

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Definitions:

Elasticity of Labor Supply

A measure of the response of labor supplied to a change in the price of labor.

Wages

Payments made to employees by employers, typically based on the number of hours worked or a fixed amount for a certain job.

Quantity of Labor

The total hours worked or the number of employees engaged in production within a certain period.

Unit Elastic

A situation where a change in price leads to an equal proportional change in the quantity demanded or supplied.