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Which is true about earnings per share

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Reference no: EM132873231

Question 1: Which of the following is true about earnings per share?

a) Diluted earnings per share is shown as a percentage rather than a dollar amount

b) basic earnings per share is calculated by dividing net income by treasury shares

c) diluted earnings per share shows shareholders the potential reduction in earnings per share if additional sales are issued related to the stock options, stock awards, and convertible securities

d) under GAAP, companies only need to report basic earnings per share, but many also choose to report diluted earnings per share

Reference no: EM132873231

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