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)

differentiate investment and finacing decisions

2 Answers  

---

What do you know about the Banking Sector?

0 Answers   IBPS,

---

Is there any relations in between Sensex and foreign currency values? like if the sensex increased then the value of Rs goes up over USD (United state doller)?

0 Answers  

---

In which department you would like to go : Operations or Sales?

0 Answers  

---

what is the shortcut to repeat the narration on a voucher?

0 Answers  

---

What are the different departments in RBI?

0 Answers   RBI,

---

Introduction Mangalore Refinery and Petrochemicals Limited (MRPL) and Reliance Petroleum Limited (RPL) Table 1 : MRPL’s Income Statement and Balance Sheet (Rs. in mn) Particulars April 1999 – March 2000 April 2000 – March 2001 April 2001 – march 2002 Net Sales 30212.04 28891.50 53714.40 Other Income 701.37 524.50 439.90 Total Income 30913.41 29415.70 54154.30 Expenditure (30112.79) (27917.50) (51587.00) Interest (2369.59) (2378.30) (6722.90) Depreciation (1427.63) (1728.60) (3633.50) Tax (0.24) (0.30) 2864.30 Total Expenditure (33910.25) (32024.70) (61943.40) Profit after Tax (2996.84) (2609.00) (4924.80) Equity 7921.00 7921.00 7921.00 Reserves 1714.50 (1506.96) (4489.56) Debt 54082.97 50516.52 55356.94 . Table II : RPL’s Income statement and Balance Sheet Particulars April 2001 – March 2002 April 2000 – March 2001 Net Sales 331170.00 309630.00 Other Income 3550.00 2200.00 Total Income 334720.00 311830.00 Expenditure (299430.00) (279090.00) Interest (9550.00) (10320.00) Depreciation (8020.00) (6610.00) Tax (980.00) (1170.00) Total Expenditure (317980.00) (297190.30) Profit after Tax 16740.00 14640.00 Equity 52020.00 47488.10 Reserves - 34974.20 Debt - 74921.30 Table III : Quarterly Closing Prices (04/30/1996 to 09/30/2002) Date BSE-30 RPL MRPL 04/30/96 3376.64 14.75 32.50 06/28/96 3731.96 12.90 28.25 09/30/96 3519.42 10.25 19.35 12/24/96 2883.88 10.40 20.60 03/31/96 3360.89 12.70 17.65 06/30/97 4256.09 17.40 18.10 09/30/97 3902.03 19.00 21.60 12/31/97 3658.98 23.55 19.85 03/31/98 3892.75 20.50 19.25 06/30/98 3250.69 20.00 16.15 09/30/98 2812.49 17.60 13.90 12/31/98 3055.41 18.80 12.90 03/31/98 3739.96 18.70 10.30 06/30/99 4140.73 27.05 19.00 09/30/99 4764.92 46.90 21.00 12/30/99 5005.82 65.70 16.70 03/31/00 5001.28 60.04 12.35 06/30/00 4748.77 53.95 9.90 09/29/00 4090.38 56.75 8.80 12/29/00 3972.12 56.60 8.80 03/30/01 3604.39 48.55 7.70 06/29/01 3456.78 47.00 6.85 09/28/01 2811.66 29.75 6.30 12/31/01 3263.33 29.30 6.80 03/28/02 3469.35 25.85 6.80 06/28/02 3244.70 24.05 10.00 09/30/02 2930.51 23.10 7.65 Questions 1. Calculate the average return and risk on shares of RPL and MRPL during the period 1996-2002. divide the total risk on each of the stocks between systematic and unsystematic components. Calculate each of the components as a percentage of the total risk.

0 Answers   Investment Bank,

---

What is Real account?

31 Answers   Accenture,

---

what would a proxy server do? what is primary domain controller? what is DNS?how does it differ froma DHCP?

0 Answers   Wipro,

---

Tell us something about yourself in one minute?

0 Answers   IBPS,

---

What Is Core Banking System?

0 Answers  

---

what is the accounting treatment of service tax ?

2 Answers  

---