The Amount of Earnings Per Share Is Usually Computed

question 89

Multiple Choice

The amount of earnings per share is usually computed:

• A) For both preference and ordinary share.
• B) For ordinary share by deducting the dividends on preference share from profit and dividing the remaining amount by the weighted average number of ordinary shares outstanding.
• C) By dividing profit by the combined number of preference and ordinary shares.
• D) On the basis of the number of shares outstanding at year-end, regardless of changes in the number of shares during the year.

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