CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

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
Correct Answer: C

Earnings per common share are equal to net earnings available to common shareholders divided by the 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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