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Sagot :
According to the given information, the earnings per share for a company is 1.8518
Earnings per share = Market price of the stock / price-to-earnings ratio
Earnings per share = $12.50 / 6.75
Earnings per share = 1.8518
- The term "earnings per share" (EPS) refers to a company's net profit divided by the total number of outstanding common shares.
- A popular metric for determining corporate value is earnings per share (EPS), which shows how much money a company makes for each share of its stock.
- A higher EPS denotes greater value because shareholders will pay more for a company's stock if they believe it is making more money than the price of its shares.
- EPS can be calculated in a number of ways, including on a diluted basis or by excluding unusual items and discontinued operations.
- Like other financial metrics, earnings per share is most useful when contrasted with similar businesses, companies in the same industry, or over time.
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