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Friday, August 19, 2011

How to Calculate Earnings Per Share (EPS)

Earnings Per Share (EPS) measures the profit attributable to shareholders to the number of shares in issue. It is calculated by dividing the total profit available to ordinary shareholders by the total number of ordinary shares. (Note: Total profit available to ordinary shareholders = Net profit after tax − Preference dividend)

Learn how to calculate EPS with the following examples:

Example 1:

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