v$2.$cengagenow.com

PRE$-$TEST

Problem $19$ of $20$

Which of the following statements regarding earnings per share $($EPS$)$ is not true?

$18$ a$.$ EPS is computed as $($Net Income $-$ Preferred Dividends$)$ Average Number of Common Shares Outstanding.

$19$ b$.$ Corporations whose stock is publicly traded must report EPS on their income statements.

$20$ c$.$ EPS is sometimes called basic earnings per share.

d$.$ EPS cannot be computed if a company has no preferred stock.