Which of the following approaches best indicates how EPS should be computed? Take after-tax net income and divide by:
A) current common shares outstanding.
B) previous years common shares outstanding.
C) treasury shares outstanding.
D) average common shares outstanding.

Question

Quizplus · Accepted Answer

EPS (Earnings Per Share) is calculated by dividing the after-tax net income by the average number of common shares outstanding during the period.

Which of the Following Approaches Best Indicates How EPS Should