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Basic Question 2 of 40
By what must a company divide net earnings available to common shareholders in computing earnings per common share?
B. Average number of common shares issued
C. Average number of common shares outstanding
A. Ending number of common shares issued
B. Average number of common shares issued
C. Average number of common shares outstanding
User Contributed Comments 5
| User | Comment |
|---|---|
| kalps | EPS = Net earnings available to common shareholders/AVRG no pf common shares OUTSTANDING |
| sarath | Remember the denominator is the weighted average of the common shares outstanding. |
| jpducros | The key word in the WASO is "COMMON" ;-) |
| renataa | whats the difference btw outstanding and issued? |
| fredpat01 | issued shares could be repurchased. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe how earnings per share is calculated and calculate and interpret a company's basic and diluted earnings per share for companies with simple and complex capital structures including those with antidilutive securities
CFA® 2025 Level I Curriculum, Volume 2, Module 2.