Asked by Jatesha Peters on Apr 25, 2024
Verified
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.
Verified Answer
Learning Objectives
- Acquire proficiency in computing earnings per share (EPS) and acknowledge its significance in assessing a firm's profitability.
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