FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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TRUE OR FALSE

Earnings per share is found by taking the net income for the year divided by the number of common shares outstanding at the end of the year.

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Solution:

Earning per share is the per share net income earned by the company.

Earning per share is computed using formula = Earnings available for common stockholders / weighted average outstanding common shares

Earnings available for common stockholders = Net income - Preferred dividend

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