Quick example - you buy 10 shares in X at $10. The company has 100 shares outstanding. Today, the company announces earnings of $1,000. Earnings per share are $10 ($1,000/100). Even if the pric eof your stock went up to $20, the EPS is $10. Also, EPS is not indicative of the dividends. The company sets the dividend payment. In our example, the company could choose to pay out the entire $10, the company could choose to pay out $0 or they could choose any random number (yes, even a number more than the $10).
if a company has 10 million shares of common stock outstanding, and the company earns 10 million dollars that year then the earnings per share is one dollar,,, and no, they dont share that with you. but if a company is good and getting more and more earnings each year, then the stock price usually goes up. A dividend is like bank interest and is usually paid out a few times a year and that is sent to you.
No. Dividends are distribution of some earnings but not EPS. If you take the total net earnings of a company for a year and divide it by the number of shares outstanding, you get earnings per share. Many companies do not declare dividends - they keep the net earnings which increases the value of the stock.
It is the amount of profit a company makes divided by the amount of shares so it's the profit (or in some cases a loss) a shareholder will earn per share over time.
Company xyz has 1,000 outstanding shares. in 2013 it earned $6,000 or an EPS of $6. If it pays $1. per share in dividends, and you own 100 shares, you would receive $100.
Add up all earnings for a company (there are standard accounting methods for doing so) and divide by the number of shares. Voila!
Guyz plz help ive been asking and asking the same question and ive been getting the same old answers and i still don't get it.
Plz help me i'm begging you what is EPS ?? Is it the profit a shareholder will earn per share ??? For example Lets say i bought 1000 shares of Microsoft for $10 dollars each. Is it the dividend i will earn per share ??? Yes or NO
If No plz explain it ???? 10 Points for the best answer.
