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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Definitions:

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, particularly through the use of reinforcements.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, a concept introduced by B.F. Skinner.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.