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Earnings per Share Calculator

Calculator

What is Earnings per Share?

Earnings per Share is the amount that the company earns for each share of the company.

Formula

Earnings per Share = (Net Income – Preferred Dividends) / Shares Outstanding

Example

A company has net income of $10,000 and preferred dividends of $3,000. There are 3,000 shares outstanding.

Earnings per Share = ($10,000 – $3,000) / 3,000 = $7,000 / 3,000 = $2.33

Therefore, the company has an earnings per share of $2.33.

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