define EPS in managerial economics
Answer (1)
26th Aug, 2021
EPS is a very important number in business. It tells shareholders how much money each share of their stock earned for the company. It's important because, usually, when a company has a high earnings per share, it also has a high stock price, which makes investors happy.
The equation for calculating earnings per share is as follows:
Earnings per Share = (Net Income - Preferred Dividends) / Number of Common Shares Outstanding
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