For these companies - [7] 19 In summary, the simplicity and...

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For these companies, a presentation such as “Earnings per common share” is appropriate on the income statement. In many instances, however, companies’ earnings per share are subject to dilution (reduction) in the future because existing contingencies permit the issuance of additional common shares.
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Unformatted text preview: [7] 19 In summary, the simplicity and availability of EPS figures lead to their widespread use. Because of the importance that the public, even the well-informed public, attaches to earnings per share, companies...
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