What is the term for the amount a firm will pay shareholders, based on the size of their investment in the company?
A) Leverage per share
B) Earnings per share
C) Solvency return
D) Current ration return
E) Profitability ratio
Answer: B
Explanation: B) Defined as net income divided by the number of shares of common stock outstanding, earnings per share determines the size of the dividend that a firm can pay shareholders.
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