If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding.

Name: If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding.
Brand: Quizplus
Rating: 4.7 (33 reviews)

Question

Quizplus · Accepted Answer

Earnings per share (EPS) are calculated by dividing the net income by the number of shares outstanding; interest expense is not added back in this calculation.

If a Company Has Issued Only One Class of Stock