An investor divides profit available to common shareholders by the shares outstanding. That figure is:
AEarnings a share
BInterest cover
CBook value sum
DBond yield sum
Answer & Solution
Correct answer: A. Earnings a share
1. Profit is allocated across shares.
2. Each share gets its portion.
3. It is earnings a share.
_Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._
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