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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