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Earnings per share is equal to net income applicable to common stock, divided by the...

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Accounting

Earnings per share is equal to net income applicable to common stock, divided by the weighted number of common shares outstanding.

true or false

While the price-earnings ratio is computed using historical earnings, it reflects investors' expectations of future earnings.

true or false

Diluted earnings per share represents a hypothetical case, showing what earnings per share would be if certain securities were converted into additional shares of common stock.

true or false

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