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    cdoner's Avatar
    cdoner Posts: 4, Reputation: 1
    New Member
     
    #1

    Feb 24, 2008, 03:05 PM
    Calculate the Denominator for Earnings Per Share
    I'm thinking it goes like this...

    Net income-Preferred dividends/average # of common shares outstanding = EPS

    Is this correct?

    Thanks
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    Feb 24, 2008, 10:52 PM
    Yes. But since you titled it "calculating the denominator," does that mean you're having trouble doing that part? They mean the average of the beginning and ending balances of shares.

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