Given the following information, what does Common Shares Outstanding mean? Is this calculated in earnings before taxes?

Description (Year 1) (Year 2)

Selling Price/Unit

($30.00) ($32.75)

General Marketing Expenses

$500,000 $500,000

Labour Costs/Unit

$6.50 $7.00

Units Sold

225,000 280,000

R&D Expenses

$375,000 $425,000

Material Costs/Unit

$5.25 $6.50

Rent Expense

$500,000 $550,000

Common Shares Outstanding

1,250,000 1,500,000

Annual Interest Expense

$325,000 $425,000

Tax Rate

30% 30%