11) Earnings per share equals gross profit divided by the weighted average number of outstanding shares of (common) stock. 12) Earnings per share equals gross profit divided by the weighted average...

11) Earnings per share equals gross profit divided by the weighted average number of outstanding shares of (common) stock.

12) Earnings per share equals gross profit divided by the weighted average number of shares in treasury.

13) Wall Street refers to earnings per share as "the number" because of the importance analysts give it in assessing the financial health of a company.

14) Wall Street refers to sales as "the number" because of the importance analysts give it in assessing the financial health of a company.

15) What is considered by analysts to be the most important number on Wall Street? How is this number calculated?

16) What problems may exist because of Wall Street's over-emphasis on earnings per share?