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Basic earnings per share is computed using:A. The actual number of common shares outstanding at the end of the year.B. A weighted-average of preferred and common shares.C. The number of common shares outstanding plus common stock equivalents.D. Weighted-average common shares outstanding for the year.

Respuesta :

Answer:

D. Weighted-average common shares outstanding for the year.

Explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Weighted-average common shares outstanding for the year)

Weighted average is come after considering the beginning year shares and ending year shares and then divide it by 2

By using this formula, the correct earning per share can come.

Hence, all other options are wrong except d.

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