Which One of the Following Statements Is Correct? Earnings Per

Multiple Choice

Which one of the following statements is correct? Earnings per share is calculated as:

A) Profit after tax and dividend divided by the number of ordinary shares
B) Profit after tax but before dividend divided by the number of ordinary shares plus the number of preference shares
C) Profit after tax but before dividend divided by the number of ordinary shares
D) Profit after tax and dividend divided by the number of ordinary shares and preference shares in issue