If EPS (earnings per share)decreases,it must mean that the company's net income has fallen.A decrease in EPS could result from a decrease in net income,an increase in the average number of shares outstanding,or an increase in the average shares proportionally larger than an increase in net income.

Question

Quizplus · Accepted Answer

A decrease in EPS can occur not only due to a fall in net income but also if the number of shares outstanding increases, even if net income remains constant or increases.

If EPS (Earnings Per Share)decreases,it Must Mean That the Company's