What is earning per sahre? how does it impact the share
holder?
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Answer / b.shivakumar reddy
EPS IS THE RELATION SHIP BETWEEN PROFIT AVILABLE TO EQUITY SHARE HOLDERS AND NUMBER OF EQUITY SHARE AND IT INDICATE THE EARNING CAPICITY OF THE PER EQUITY EQUITY SHARE
EPS=PROFIT AVIALABLE TO EQUITY HOLDERS /NO OF OUTSTANDING EQUITUY SHARES.
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Answer / alpi rastogi
Earning per share concerned that Remainder earning of
company after paying Interest on Debenture,preference
dividend & tax would be distributed among equity
sharehoders.
EPS= Earning available for equity shareholders/No. of
Equity shareholders
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / satya
The portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share
serves as an indicator of a company's profitability.
Calculated as:
When calculating, it is more accurate to use a weighted
average number of shares outstanding over the reporting
term, because the number of shares outstanding can change
over time. However, data sources sometimes simplify the
calculation by using the number of shares outstanding at
the end of the period.
Diluted EPS expands on basic EPS by including the shares of
convertibles or warrants outstanding in the outstanding
shares number.
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