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Commerce · Q314

Financial Management

Graduate and Post Graduate · Commerce · question 314

Q314

Number of shares outstanding if it is divided by net income for using to calculate

A.
earning per share
Answer
B.
dividends per share
C.
book value of share
D.
market value of shares

Answer: Option A

Solution

Answer: Option A
Solution:
Number of shares outstanding if it is divided by net income for using to calculate earning per share. Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is calculated by dividing the company's net income with its total number of outstanding shares.