Which of the Following Has No Effect on the Computation

question 130

Multiple Choice

Which of the following has no effect on the computation of earnings per share for the current period?

• A)The amount of cash dividends declared or paid to preferred stockholders.
• B)The amount of cash dividends declared or paid to common stockholders.
• C)Net income.
• D)The number of shares of common stock issued.

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Definitions:

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically in financial or real estate transactions, facilitating deals in exchange for a commission or fee.

Share Options

Rights granted by a company to its employees or directors to buy shares in the company at a fixed price for a limited period.

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying asset or security by a predetermined date.

Ordinary Shares

Equity securities representing ownership in a company, giving shareholders voting rights and a share in the company's profits.