Examlex

Solved

Explain How to Calculate Earnings Per Share and How It

question 66

Essay

Explain how to calculate earnings per share and how it is used for analysis of a company's financial status.


Definitions:

Stated Value

A value assigned to a corporation's stock for accounting purposes, which may bear no relation to the market value.

Shares

Units of ownership interest in a corporation or financial asset that provide a share in the corporation's profits and a claim on its assets.

Paid-In Capital

The total amount of money raised by a company through the sale of shares to the shareholders, including additional amounts over the nominal value.

Issue Price

The price at which new securities are sold to the public or investors by the issuer when they are first offered.

Related Questions