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Basic Question 5 of 40

The standard equation for computing basic earnings per share (EPS) is ______.

A. Total Assets = Total Liabilities + Stockholder's Equity
B. Basis EPS = [Net Income - Preferred Dividends]/Weighted Average Number of Common Shares Outstanding
C. [Net Income - Common Dividends] / Weighted Average Number of Common Shares Outstanding

User Contributed Comments 3

User Comment
JakeZ I love A lol
Shaan23 Yeah..haha. If you chose A, quit and go get drunk. It'll be more productive and fun.
zhefuli A is cute.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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.