Earnings Per Share Learn How to Calculate Basic and Diluted EPS
It’s important to consider these limitations while using EPS data to inform your investment decisions. EPS is calculated by subtracting a company’s preferred dividend from its net income and dividing that by the weighted average common shares outstanding. Earnings per share (EPS) means the income earned by each common share of a company. It is computed only for common stock and sometimes referred to as earnings per common share. Basic EPS vs diluted EPS vs adjusted EPS This can be for a number of reasons, including being part of the…
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