Question

Basic earnings per share is calculated as net income available to common shareholders divided by Multiple choice question. average total assets. average stockholders' equity. weighted average common shares outstanding. ending retained earnings.

Answer 1

Basic earnings per share is calculated as net income available to common shareholders weighted average common shares outstanding.

What is basic earnings per share?

Basic earnings per share is the share of a firm's net income that is available to each unit of its common outstanding shares. Basic earnings per share differs from diluted earnings because it excludes preferred shares from its calculations.

Basic earnings per share = (net income - proffered shares) / common outstanding shares

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