Question: 1. Basic earnings per share (EPS) is computed as a. All earnings divided by all shares of stock. b. All earnings divided by outstanding shares

1. Basic earnings per share (EPS) is computed as a. All

1. Basic earnings per share (EPS) is computed as a. All earnings divided by all shares of stock. b. All earnings divided by outstanding shares of common stock. c. Net income available to common shareholders divided by weighted average outstanding shares of common stock. d. Dividends to preferred shareholders divided by weighted average outstanding shares of preferred stock. 2. Basic earnings per share (EPS) is used by investors and analysts in evaluating the a. Book value of the company's assets. b. Value of a share of the company's common stock. c. Value of a share of the company's preferred stock. d. Risk factor of the company's dilutive securities

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