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Earnings Per Share (EPS) is equal to __________.

A. Profit before tax/No of outstanding shares

B. Profit after tax/No of outstanding shares

C. Profit after tax/Amount of equity share capital

D. Profit after tax less equity dividends/No of outstanding shares

Answer: Option B

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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