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In Order to Calculate Diluted Earnings Per Share,the Net Profit

question 9

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In order to calculate diluted earnings per share,the net profit attributable to ordinary shareholders and the weighted average number of shares outstanding should be adjusted for the effects of all dilutive potential ordinary shares.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond or stock as stated by the issuing company, not necessarily reflecting its market value.

Earnings Per Share

Earnings Per Share (EPS) measures the portion of a company's profit allocated to each outstanding share, indicating a company’s financial performance.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership stake held by shareholders.

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