True or False: Earnings per share is a corporation's after-tax earnings divided by the number of stockholders.

Earnings per share (EPS) is actually calculated as a corporation's after-tax earnings divided by the number of outstanding shares of common stock, not the number of stockholders. This metric provides a direct measure of the profitability of a company on a per-share basis, which is key for investors to assess financial performance and evaluate the value of their investments.

The misunderstanding in the statement arises from the use of "number of stockholders" instead of "number of shares." The total number of stockholders can vary widely and does not directly influence the calculation of EPS. Each stockholder may own varying amounts of shares, and it is the overall number of shares that determines how earnings are distributed among shareholders. Therefore, the statement is deemed false based on the incorrect reference to the number of stockholders in the calculation of EPS.