BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Face value of shares × Market price per share
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Number of shares × Face value of shares
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Number of shares × Market price per share
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Number of shares × Profit per share
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Detailed explanation-1: -A company’s earnings per share (EPS) is defined as earnings available to common shareholders divided by common stock shares outstanding, and the ratio is a key indicator of a firm’s shareholder value. When a company can increase earnings, the ratio increases and investors view the company as more valuable.
Detailed explanation-2: -Shareholders’ Equity = Share Capital + Retained Earnings – Treasury Stock. The share capital method is sometimes known as the investor’s equation. The above formula sums the retained earnings of the business and the share capital and subtracts the treasury shares.
Detailed explanation-3: -The market price per share is used to determine a company’s market capitalization, or “market cap.” To calculate it, take the most recent share price of a company and multiply it by the total number of outstanding shares.