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EPS is computed by dividing net income by the average number of shares outstanding.
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- Book value per share is computed by dividing the net assets to the total number of shares outstanding. a. TRUE b. FALSEBasic earnings per share is computed as net income minus preferred dividends, divided by weighted-average common shares outstanding. True or False True False1. What is the weighted average number of ordinary shares outstanding that should be used for the computation of book value per share and basic earnings per share?
- Fifo, Lifo and weighted average methods are related to? A. Inventory valuation B. Non current liabilities C. Issue of sharesIt is calculated, taking into account the outstanding equity shares of the company A. Conversion Earnings per share B. Diluted earnings per share C. Basic earnings per share D. Share optionsTRUE OR FALSE? In computing earnings per share, we must interpret this in terms of the number of shares outstanding.
- How are dividends per share for common stock used in the calculation of the following? O A. O B. O c. OD. Dividends per share payout ratio Numerator Numerator Denominator Denominator Earnings per share Numerator Not used Not used DenominatorEarnings per share is a factor used to determine dividends. Select one: True FalseIn its most basic form, the Earnings per Share (EPS) ratio is calculated as: Net income divided by average stockholder’s equity. Dividends paid on common stock divided by the average number of shares outstanding of common stock. Net income divided by the average number of shares outstanding of common stock. Sales divided by average stockholder’s equity.
- What does the P/E ratio measure? C . Th e earnings for one common share of stock.Ratios concerned with returns from, and the performance of, shares are 1.Market ratios 2.effeciency ratio 3.liquidity ratios 4.solvency ratioThe price-earnings ratio on common stock is calculated as a.market price per share of common stock, divided by earnings per share on common stock b.market price per share of common stock, divided by dividends per share of common stock c.earnings per share of common stock, divided by market price per share of common stock d.dividends per share of common stock, divided by earnings per share on common stock