Profit available to ordinary shareholders divided by the weighted number of ordinary shares is the calculation for:
A) net tangible asset backing (NTAB) per share.
B) dividend per share.
C) operating cash flow per share.
D) earnings per share.

Question

Quizplus · Accepted Answer

The calculation for earnings per share (EPS) is the profit available to ordinary shareholders divided by the weighted number of ordinary shares outstanding. Therefore, option D is the correct answer. Option A is calculated by dividing the net tangible assets by the number of outstanding shares, option B is the total amount of dividends paid out divided by the number of outstanding shares, and option C is calculated as operating cash flow divided by the number of outstanding shares.

Profit Available to Ordinary Shareholders Divided by the Weighted Number