Answer / richa

Remember that earnings per share is calculated by dividing
the company's profit by the number of shares outstanding.
Warrants, stock options, convertible preferred shares, etc.
all serve to increasing the number of shares outstanding. As
a shareholder, this is a bad thing. If the denominator in
the equation (shares outstanding) is larger, the earnings
per share is reduced (the same profit figure is used in the
numerator).

This is a conservative metric because it indicates somewhat
of a worst-case scenario. On one hand, everyone holding
options, warrants, convertible preferred shares, etc. is
unlikely convert their shares all at once. At the same time,
if things go well, there is a good chance that all options
and convertibles will be converted into common stock. A big
difference in a company's EPS and diluted EPS can indicate
high potential dilution for the company's shares, an
attribute almost unanimously ostracized by analysts and
investors alike.

Answer / sg reddy

earning per share indicaes that the prapotion of profit
allocated to an individual share.
Dilluted share meen increse the no of shares by convert
debenters ,Warrants, stock options, convertible preferred
shares. its simply called as Dillution effect.
To the reason of Dilluted shares the EPS is to be decrese
to compare the normal shares.
1. Its use as one of the anty takeover policy.
2. its not a present total shares but in the time redeme.
3. the diluted EPS will always be lower than the simple EPS.
4. A big difference in a company's EPS and diluted EPS can
indicate high potential dilution for the company's shares.

Answer / venkateswarlu

divedend (each share)

What are different types of Dividends?

10 Answers  

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hi frends, i completed mba in 2008,i worked as finance reseach associate in opi comp through consultancy. now my problem is when iam going other comp inteview they ask me is mab finace candidate selected through consultancy. can any body tell me how can i tell ans this

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What are the techniques used to gain more profit in share markets?

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What do you mean by limited liability?

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plz tell me who are known as underwriters? in simply words

3 Answers  

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How Do You Report A Write-down In Inventory?

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Consider the following data for a particular period: Portfolio (P) market (M) ---------------------------------------------------- ----- Average return 35 % 28 % Beta 1.2 1.0 Standard deviation 4.2 % 30 % Non-systematic risk 18 % ---- Calculate the following performance measures for portfolio (P) and the market (M) by using Sharpe, Jensen and Treynor methods. The T-bill rate during the period was 6 % by which measures did portfolio P outperform the market $

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What are 'non- performing assets' (npa)?

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What are nationalized banks?

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full name of axis bank

7 Answers   Axis, Axis Bank, ICICI, QUE,

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send me all the question whch can be askd in bank interview

0 Answers   Banking,

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