Earnings per Share (EPS) Flashcards
1
Q
What does EPS measure?
A
Net income earned on each share of a company’s common stock
2
Q
Net income earned on each share of a company’s common stock
A
What does EPS measure?
3
Q
How is EPS calculated?
A
Net income / weighted average number of common shares outstanding during the year
4
Q
Net income / weighted average number of common shares outstanding during the year
A
How is EPS calculated?
5
Q
What happens if a company has zero/negative earnings?
A
Earnings per share will also be zero/negative
6
Q
Earnings per share will also be zero/negative
A
What happens if a company has zero/negative earnings?
