Earnings per Share Flashcards
1
Q
What is the basic earnings per share formula?
A
Earnings/Shares
2
Q
What is included in the earnings figure for the earnings per share formula?
A
Group profit after tax - non-controlling interests and irredeemable preference share dividends
3
Q
What is included in the shares figure for the earnings per share formula?
A
The weighted average number of ordinary shares
4
Q
How do you handle a bonus issue in regards to the earnings per share calculation?
A
You apply a bonus fraction from the start of the year up to the date of the bonus issue by adding one additional share on the fraction.
5
Q
What is the price earnings ratio?
A
Market value of share/EPS
