Concept explainers
(a)
Earnings per share:
Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.
The following formula can be used to calculate earnings per share:
The earnings per share of Incorporation BB for the year ended December 31, 2016 and 2015.
(b)
To identify: Whether the change in the earnings per share of Incorporation BB from 2016 to 2015 indicates a favorable or unfavorable trend.
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Chapter 13 Solutions
Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
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