26 April 2009
what is mean by basic Earning Per Share (EPS) and diluted Earning Per Shares (EPS)? and the difference between these two eps? thank u in advance.....
26 April 2009
Basic earning per share - Profit after taxes / number of shares which the company has made earnings.
Diluted earning per share - the amount of profits which has been absorbed through adjustment for carryforward losses and dividend distribution / number of shares.
For eg. Profit after tax - 100000 number of shares - 10000 earning per share - 10
dividend distrubuted - 20000 old losses adjustes - 40000 Total - 60000 / number of shares - 10000 Diluted earning per share - 6
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