The basic earnings per share formula is:

multiple choice

$($net income plus preferred dividends$)$ divided by weighted$-$average common shares outstanding.

$($net income minus preferred dividends$)$ divided by weighted$-$average common shares outstanding.

$($net income minus preferred dividends$)$ times weighted$-$average common shares outstanding.

$($net income plus preferred dividends$)$ times weighted$-$average common shares outstanding.