Calculate the earnings per share, Strategic Management

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Q. Calculate the Earnings per share?

EPS = Profit available to ordinary shareholders (PAT)/Weighted average number of shares in issue

(Pence per share)

This ratio shows the profitability of each share, i.e. the amount of potential dividend available per share.  EPS is a very significant ratio and is published in the annual accounts of companies (IAS 33).


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