Question

How is earnings per common share calculated? Operating profit divided by the average number of common stock shares outstanding. Net profit divided by the average number of common and preferred stock shares outstanding. Operating profit divided by the average number of repurchased common stock shares. Net profit divided by the average number of common stock shares outstanding.

Answer 1

Net profit divided by the average number of common stock shares outstanding

Step-by-step explanation:

According to IAS 33.Earnings per share is earning attributable to each common share.

Earnings per Share = Net Profit or Loss for the period attributable to Common Stock Holders divided by Weighted Average Number of Common Stock Shares in Issue during the Period.