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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?

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.
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Andrea Schildbach

Andrea Schildbach

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.