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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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How is basic comings per share computed?

To determine

Explain the manner of calculating the basic earnings per share.

Explanation

Earnings per share: Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analysing the profitability of company’s stockholders.

The following formula can be used to calculate basic earnings per share:

Earnings&

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