Jack wants to compare the earnings per share of two popular high-tech firms.Which formula would Jack use?
A)Net income divided by the market value of the common shares
B)Net income divided by the market value of the preferred shares
C)Total assets divided by number of common and preferred shares outstanding
D)Total assets divided by value of common shares outstanding
E)Net income divided by number of common shares outstanding

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of common shares outstanding.

Jack Wants to Compare the Earnings Per Share of Two