BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Earning after tax / no. of debentures
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Earning after tax / no. of Preference shares
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Earning after tax / no. of Equity shares
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None of the above
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Detailed explanation-1: -Basic earnings per share should be calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Detailed explanation-2: -EPS= Net profit after tax and preference dividend / Number of equity shares. Was this answer helpful?
Detailed explanation-3: -Earnings per share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock.
Detailed explanation-4: -Earnings per share is a calculation of a company’s profits that are divided by the number of shares outstanding. This calculation gives investors an idea of how much money each share of the company is making. The calculation starts with the company’s net income, which is the company’s profits after taxes and expenses.
Detailed explanation-5: -Shareholders’ equity may be calculated by subtracting its total liabilities from its total assets-both of which are itemized on a company’s balance sheet. Total assets can be categorized as either current or non-current assets.