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Earnings per share is a ratio that indicates Select one: a. profit earned by each common share b. profit earned by each prefe
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Answer #1

Earning per share is a ratio that indicates profit earned by each common share.

Correct option is a.

Earning per share is calculated as under:

Earning per share = ( Net income - Preferred dividends)/ Number of common shares outstanding

Hence, earning per share denotes income earned per common share.

Kindly comment if you need further assistance. Thanks‼!

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