Which of the following mathematical expressions computes earnings per share?
A) Earnings per share = Net Income × Number of outstanding shares of common stock
B) Earnings per share = (Net Income + Dividend Paid) ÷ Number of outstanding shares of common stock
C) Earnings per share = Net Income ÷ Number of outstanding shares of common stock
D) Earnings per share = (Net Income - Dividend Paid) ÷ Number of outstanding shares of common stock
E) Earnings per share = (Net Income - Dividend Paid) × Number of outstanding shares of common stock
Correct Answer:
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