Earnings per share EPS
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7 Terms
1
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What is the goal of financial management at a company
Maximize the value of common stock
2
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What is dividend preference of preferred stock
Before common stock
3
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What is a dividend
A distribution (payment) of the corporation’s net income to the shareholders.
4
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What are two other terms for net income?
Earnings or profit
5
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How do you calculate shares outstanding?
Issued - treasury
6
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How do you calculate EPS?
Net income – preferred dividends = net income available to common stockholders
EPS = ---------------------------------------------
Weighted number of common shares outstanding
7
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How do you interpret EPS?
Higher is better
Note 
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