The `earnings` portion is the ____________ reported by the company per share.a.Net income after taxb.Dividend yieldc.Reported gains in the balance sheetd.Outstanding share
Question
The earnings portion is the ____________ reported by the company per share.a.Net income after taxb.Dividend yieldc.Reported gains in the balance sheetd.Outstanding share
Solution
The earnings portion is the a. Net income after tax reported by the company per share.
Here's why:
a. Net income after tax: This is the amount of money the company has earned after all its expenses, including taxes, have been deducted. It's the most accurate reflection of the company's profitability, and it's the figure that's typically used to calculate earnings per share (EPS).
b. Dividend yield: This is a financial ratio that shows how much a company pays out
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