Q209
Earnings Per Share (EPS) is equal to __________.
A.
Profit before tax/No of outstanding shares
B.
Profit after tax/No of outstanding shares
AnswerC.
Profit after tax/Amount of equity share capital
D.
Profit after tax less equity dividends/No of outstanding shares
Answer: Option B
Solution
Answer: Option B
Solution:
Earnings Per Share (EPS) is equal to Profit after tax/No of outstanding shares. It is calculated by dividing the company's net income with its total number of outstanding shares. It is a tool that market participants use frequently to gauge the profitability of a company before buying its shares.