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Kategori : 2016 COMMERCE FAQ FINANCE INVESTMENTS Q&A STOCK BROKERAGE STOCK EXCHANGE STOCK MARKET STOCK TRADING STOCKS
Earnings Per Share is a ratio of the Net Income of a company (Check here to know how we arrive at the Net Income of a company) to that of the total number of shares available for that company.
In other words,
Earnings Per Share (EPS) = (Net Income of a company)/(Total No. Of Shares of the company)
If we look at the last article's example values, we had Net Income = $350,000 and Total No. of shares = 1 million.
Therefore, the Earnings Per Share (EPS) = $350,000/1 million = 0.35 EPS