The amount of a company's net income earned for each share of its outstanding common stock is termed the:
A)return on equity.
B)price/earnings ratio.
C)earnings per share.
D)dividend yield.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is the amount of net income attributable to each outstanding share of common stock. It is calculated by dividing the total earnings by the number of shares outstanding. The other options (A, B, and D) are different measures of a company's performance and may not necessarily be related to its earnings per share.

The Amount of a Company's Net Income Earned for Each