Asked by Jatesha Peters on Apr 25, 2024

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Earnings per share is calculated

A) only for common stock.
B) only for preferred stock.
C) for common and preferred stock.
D) only for treasury stock.

Earnings per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares of common stock.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights and a claim on a portion of its profits in the form of dividends.

Preferred Stock

Capital stock that has some preferences over common stock.

  • Acquire proficiency in computing earnings per share (EPS) and acknowledge its significance in assessing a firm's profitability.
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Lexis Miller7 days ago
Final Answer :
A
Explanation :
Earnings per share (EPS) is a financial metric used to calculate the portion of a company's profit that is allocated to each outstanding share of common stock. It is a ratio that represents the amount of earnings attributable to each outstanding share of common stock. Therefore, EPS is calculated only for common stock.