How can we calculate EPS
How can we calculate EPS?
Expert
It is computed by dividing the net profit after taxes and preference dividend by the sum total number of equity shares. It is a small difference of return on equity capital ratio. The method of Earning per share ratio is illustrated below:- ‘[Earnings per share (EPS) Ratio = (Net profit after tax - Preference dividend) / No. of equity shares (common shares)]’
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