How are earnings per share calculated? a) Use the income statement to determine earnings after taxes (net income) and divide by the previous period's earnings after taxes. Then subtract 1 from the previously calculated value. b) Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding. c) Use the income statement to determine earnings after taxes (net income) and divide by the number of common and preferred shares outstanding. d) Use the income statement to determine earnings after taxes (net income) and divide by the forecasted period's earnings after taxes. Then subtract 1 from the previously calculated value

How are earnings per share calculated? a) Use the income statement to

1.	How are earnings per share calculated? a) Use the income statement to determine earnings after taxes (net income) and divide by the previous period's earnings after taxes. Then subtract 1 from the previously calculated value. b) Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding. c) Use the income statement to determine earnings after taxes (net income) and divide by the number of common and preferred shares outstanding. d) Use the income statement to determine earnings after taxes (net income) and divide by the forecasted period's earnings after taxes. Then subtract 1 from the previously calculated value
Answer» (b)Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding.

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