When Computing Earnings Per Share, the Numerator Includes Net Income

question 92

Essay

When computing earnings per share, the numerator includes net income minus any dividends paid to common stockholders.

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Definitions:

Weaknesses

Flaws or shortcomings within a business that may hinder its performance or ability to compete effectively.

SWOT Analysis Matrix

A strategic planning tool that helps identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strengths-Opportunities

Identifies areas where an organization has advantages and favorable conditions in its environment to leverage for success.

Consumer Needs

The requirements or desires of potential customers that drive their purchasing decisions.