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Answer Posted / s.sivaprasad
The Term Earnings Per Share (EPS) represents the portion of
a company's earnings, net of taxes and preferred stock
dividends, that is allocated to each share of common stock.
The Figure can be calculated simply by dividing net income
earned in a given reporting period (usually quarterly or
annually) by the total number of shares outstanding during
the same term. Because the number of shares outstanding can
fluctuate, a weighted average is typically used.
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