GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the equity shareholder purchases the shares of the company at more than the face value of the share then the____is calculated.
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Payout Ratio
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Debt Equity Ratio
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Earnings Yield Ratio
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Dividend Yield Ratio
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Explanation:
Detailed explanation-1: -What Is the Formula for Earnings per Share? To calculate earnings per share, take a company’s net income and subtract from that preferred dividends. Then divide that amount by the average number of outstanding common shares.
Detailed explanation-2: -Shareholders’ Equity = Total Assets – Total Liabilities The above formula is known as the basic accounting equation, and it is relatively easy to use. Take the sum of all assets in the balance sheet and deduct the value of all liabilities.
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