The Earnings Per Share of Common Stock Calculation

question 19

Multiple Choice

The earnings per share of common stock calculation:

• A) is made by dividing net income by the number of shares of common stock outstanding at the end of the year.
• B) is complicated by the declaration of cash dividends during the year.
• C) includes gains or losses from treasury stock transactions.
• D)is complicated by the presence of preferred stock in the capital structure.

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Definitions:

Behaviourism

An emphasis on explaining observable behaviour in terms of reinforcement schedules.

Cognitive Events

Mental operations or processes involved in perception, memory, reasoning, and problem solving.

Publicly Observable

Events or actions that are open to being seen or noticed by the general public or by a specific audience.

Group Mind

McDougall’s idea that people adopt a qualitatively different mode of thinking when in a group.