Question

Earnings per share a.helps compare companies of different sizes b.must be reported by a public company c.is the net income per common share d.All of these choices are correct.

Answer 1

Answer:

d. All of these choices are correct.

Explanation:

The earning per share shows a relationship between the net income after considering the preference dividend and the number of outstanding  shares

The formula is shown below:

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

Moreover, it is used for the comparison and it must be reported by a public company on a quarterly basis or annual basis