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Friday 22 April 2011

What is Earning per share

Earning per share (EPS): It is a financial ratio that gives the information regarding earing available to each equity share. It is very important financial ratio for assessing the state of market price of share. The EPS statement is applicable to the enterprise whose equity shares are listed in stock exchange.

Types of EPS:

1. Basic EPS ( with normal shares)
2. Diluted EPS (with normal shares and convertible shares)

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