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What is a formula of Earning ratio and earning per share?

Price earning ratio = market value per share / Earning per share Earning per share = Net income available to share holders / number of shares outstanding


What is the difference between basic earning per share and adjusted earning per share?

what is the difference between basic earning per and adjusted earning per share?


How will you deal with goodwill when new partner brings his share of goodwill in cash?

as an income


Why is goodwill account debited when company issues shares to promoters?

Promoters are the pioneer investors of a company. It can be said that due to the promoters the company has come this far. So, promoters do deserve some credibility and they get goodwill. Goodwill is debited and the promoters capital is credited. Thus, the promoters don't bring in cash for their increased share. But if, the goodwill has already been created before and the promoters have got their share, promoters need to bring cash for additional share.


What is the definition of earnings per share?

Earning per share is that per share amount of earning which is only relevant to common share holders of business and calculated as follows: EPS = Net income available to common shareholders / Outstanding shares


What is the limitation of earning per share?

difficult to obtain the exalt number of equity share outstanding


Is diluted earning per share is calculated in case of losses?

Diluted earning per share is only calculated when company has issued some conditional warrants or rights to purchase share to it's employees or other persons.


What is earning per share of bse sensex?

p/e


What does ESP stand for in a company name?

earning per share


What are the differences between earnings per share and dividends per share?

Earning and dividend are two different things that's why they are also different from each other Example: Total Earning in 20xx = 1000 Dividend = 200 Number of shares = 100 Earning per share = 1000/100 = 10 Dividend per share = 200/100 = 2


How do you Compute earnings per share?

Net income minus Preferred Dividends / Weighted-Average of Common Share Outstanding = Earning per share


Is earnings per share found on income statement or balance sheet?

Earning per share information is shown in income statement and not shown in balance sheet of business.