Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Earning per share
Earnings per share (EPS) are computed as profit attributable to equity divided by the number of shares in issue and ranking for dividends. EPS therefore represents what is available to be paid out as dividends. Clearly so if the number of shares in issue remains fixed the EPS will rise as the net profit attributable to equity increase.
The value of EPS is able to be calculated by dividing the share price by the P/E ratio. For Buntam this signifies EPS equals eight cents. In other prose the earnings per share is equal to the gross dividend payable. For Zellus the EPS is equivalent to 18 cents (270/15) which compares with a gross dividend of nine cents. On first sight thus it is tempting to view Zellus as a better investment because its EPS is higher. On the other side an investor has to pay 270 cents per share to get earning of 18 cents compared with 160 cents to get earning of eight cents. The EPS figure is of narrow value on its own it needs to be judged in conjunction with the share price and hence the P/E ratio.
Q. What do you mean by Present Value of a Future Sum? The present value of a future sum will be worth less than the future sum because one foregoes the opportunity to invest an
A floater where the coupon rate is computed as a fraction of the reference rate plus a quoted margin, are known as a de-leveraged floater. The general formula for this
Explain the significance of the term additional funds needed . When the pro forma balance sheet is finished, total liabilities and total assets and equity will rarely match.
Under what circumstances would market to book value ratios be misleading? Explain. The Market to Book ratio is helpful, however it is only a irregular approximation of how li
Bond are formal certificates issued by the companies or government agencies acknowledging the indebtedness. To the investors, they are proofs of investment. In th
R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv
What are the benefits of the JIT inventory control system? The just-in-time that is abbreviated as JIT inventory control system lowers inventory carrying costs and tends to inc
Question: You have been appointed as the head of the treasury of Platza International, an automobile firm with many subsidiaries abroad. The management of Platza International
Question: In each case below and having regard to your knowledge of Accounting Concepts, comment on and assess the validity of the accounting implications/practices to be adop
Q. What do you know about sinking funds? sinking funds : quite often, one may be interested to accumulate a target amount over a given period inclusive of interest for the peri
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd