EPS (Earnings Per Share) basic =
AProfit ÷ assets
BNet income available to common shareholders ÷ weighted average common shares outstandingCORRECT
CRevenue ÷ shares
DDividend ÷ price
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Why the answer is B, and why the others tempt you.
Basic EPS — preferred dividends are subtracted from net income before dividing by weighted-average ordinary shares.
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