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Basic Question 2 of 40
By what must a company divide net earnings available to common shareholders in computing earnings per common share?
B. Average number of common shares issued
C. Average number of common shares outstanding
A. Ending number of common shares issued
B. Average number of common shares issued
C. 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. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.