Basic earnings per share is computed as net income minus preferred dividends, divided by weighted-average common sharesoutstanding.True or FalseTrueFalse

Earnings per share (EPS) is the ratio that describes how much profit is earned by the company for…

Answered: Basic earnings per share is computed as…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 22Q: What information do you need to calculate the weighted average common shares outstanding?

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Similar questions

Stockholder Profitability Ratios The following information pertains to Montague Corporation Required: Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)
Ratio Analysis Consider the following information. Required: Calculate the stockholder payout ratios. (Note: Round answers to two decimal places.) Calculate the stockholder profitability ratios. (Note: Round answers to two decimal places.)
Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation: Required: Calculate the dividend yield, dividend payout, and total payout. (Note: Round answers to two decimal places.)
A company reports the following: Determine (a) the return on stockholders equity and (b) the return on common stockholders equity. Round percentages to one decimal place.
What information do you need to calculate the weighted average common shares outstanding?
Fractions or percentages computed by dividing one account or line-item amount by another are called a. returns. b. industry averages. c. common-size statements. d. dividend yields. e. ratios.
The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Note: Round answers to two decimal places. 1. Compute the number of common shares. 2. Compute earnings per share.
EPS is computed by dividing net income by the average number of shares outstanding. True False
In its most basic form, the Earnings per Share (EPS) ratio is calculated as: Net income divided by average stockholder’s equity. Dividends paid on common stock divided by the average number of shares outstanding of common stock. Net income divided by the average number of shares outstanding of common stock. Sales divided by average stockholder’s equity.
The price-earnings ratio on common stock is calculated as a.market price per share of common stock, divided by earnings per share on common stock b.market price per share of common stock, divided by dividends per share of common stock c.earnings per share of common stock, divided by market price per share of common stock d.dividends per share of common stock, divided by earnings per share on common stock
Return on equitya. is a measure of the ratio of net income to dividends declared.b. is calculated for preferred stock only.c. is calculated by dividing net income plus preferred dividends by average common stockholders’ equity.d. is a measure used to compare companies of different sizes.
Earnings per share is a profitability ratio measuring how much a furm earns per share of common stock outstanding. True False

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Basic earnings per share is computed as net income minus preferred dividends, divided by weighted-average common shares outstanding. True or False True False