What is earnings per share?
1 answersQuestion asked ( August 15, 2009 , Shopping / Finance )
I understand earnings per share is an important parameter to evaluate the value of a stock. What is eps? Are dividends paid or return on equities termed as earnings per share?
Answers to : What is earnings per share...
Answer
The earnings per share is the ratio between the profit after tax and interest paid to the number of shares issued. The Earnings per share will normally be higher than the dividend per share, as some portion of earnings are retained by the organization as reserves and are not distributed as dividends. Earnings per share show the true value only if they are not affected by the declining value of depreciation of assets, selling of assets such as property and selling of profitable parts of the organization.
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