5.2.1 Earnings_per_share_EPS_

5.2.1 Earnings_per_share_EPS_ - as yet unissued shares from...

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1 Earnings Per Share (EPS) Cash flow more important than EPS But we still cannot ignore EPS EPS is: Measure of return to each shareholder Diminished by new share issues (dilution) AND Finance Risk impinges on EPS measure Dividend payments affect EPS growth
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2 How to compute EPS Simple EPS Preference dividends subtracted from NPAT Remaining earnings available to ordinary shareholders divided by average of ordinary shares outstanding NB: Ordinary Shares = Common Shares = Common Stock
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3 Primary EPS Preference dividend taken off NPAT first Ordinary shares are increased to include
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Unformatted text preview: as yet unissued shares from Options and Convertibles likely to be converted in near future Earnings available to ordinary shareholders then divided by average of ordinary shares outstanding 4 Fully Diluted EPS Similar to Primary EPS But: ALL Options and Convertibles are assumed to be exercised or converted (however unlikely) 5 Finance Vocabulary in general See the website of Interest.co.nz http://www.interest.co.nz/glossary.asp Quite a good glossary of terms. This is just one of many available to you on the WWW....
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5.2.1 Earnings_per_share_EPS_ - as yet unissued shares from...

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