Earnings Per Share
Earnings per share are allocating profit of company to common stock which is outstanding. Earnings per share are calculated by Profit less preferred Shares divided by weighted average common shares. It is important to calculate the earnings per share as it is helpful in calculating the price to earning valuation ratio.
This a type of the common stock that is issued without having a par value on the face of the stock certificate. As we know that the par value is the price of the share at which the particular share is sold by the
Earnings Per Share (EPS) Ratio: Definition: Earnings per share ratio (EPS Ratio) is a small variation of return on equity capital ratio and is calculated by dividing the net profit after taxes and preference dividend by the total number of equity shares. Formula of