Basic earnings per share
ID:CVBES
Video Overview
Earnings per share (EPS) is a very important ratio for a company. The greater the EPS, the more attractive an investment in that company will be to existing and potential shareholders. In this tutorial we will calculate basic earnings per share. These shares are the ordinary shares of the company. There are three different situations that we will look at, namely, where there is no change in the number of ordinary shares for the year, where additional ordinary shares are issued during the year for a consideration, and where additional shares are issued during the year to existing shareholders for no consideration.
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