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Earnings per share is computed for: a. common stock. b. non-redeemable preferred. c. warrants d. All...

  1. Earnings per share is computed for:

a.

common stock.

b.

non-redeemable preferred.

c.

warrants

d.

All of the above
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Answer #1

Earnings per share are computed for common stock. As common stockholders are the owners of the company, so they have an interest in the earning of the company. The stronger the earning of a company, the better will the common stock perform in the market. Non-redeemable preferred have fixed pay and don't depend too much on EPS. Warrants are right to buy shares at predetermined prices.

So the correct option is "a"

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