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EPS (Earning Per Share) is:_____.
a) calculated by adding net profit to the number of shares outstanding.
b) dividing net profit by the number of shares outstanding.
c) adding net profit by the number of current shares.
d) dividing net profit by the number of current shares.
e) none of the above.

Respuesta :

Answer:

d) dividing net profit by the number of current shares.

Explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Outstanding Number of shares)

Basically we divide the net income or net profit after considering the preference dividend and then divided it by the outstanding number of shares so the earning per share could come

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