The denominator of the earnings per share computation, Financial Management

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The denominator of the earnings per share computation

1. Dividends on preferred stock total $5,000 for the current year. How would these dividends influence earnings per share?

2. The denominator of the earnings per share computation includes the weighted average number of common shares outstanding. Why use the weighted average instead of the year-end common shares outstanding?

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Financial Management: The denominator of the earnings per share computation

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Financial Management: The denominator of the earnings per share computation

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