Explain the term Earnings per share
Briefly explain the term Earnings per share (or EPS)?
Expert
It is the amount of earning per each share of a company's accumulation. Companies require the EPS for their each income statement that shows regarding the discontinuing operations, continued operations, outstanding items and net income. EPS does not depend on the raise or reduce of the earning power of the company and gets computed over number of years.
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Define cyclical fluctuations?
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Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
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Give a brief introduction of the term Risk Principle?
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Illustrate the characteristics of the Market System?
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