Final answer:
The amount of income earned per share of a company's outstanding common stock is known as earnings per share.
Step-by-step explanation:
The correct answer is earnings per share. Earnings per share (EPS) is a financial metric that calculates the net income earned by a company per outstanding share of its common stock. It is a measure of profitability and indicates how much money a company is generating for its shareholders.
To calculate earnings per share, you divide the net income attributable to common shareholders by the number of outstanding shares of common stock. This gives you the amount of income earned per share of stock.
For example, if a company has a net income of $1 million and has 500,000 shares of common stock outstanding, the earnings per share would be $2 ($1 million divided by 500,000 shares).