When comparing a company's results from one year to the next,what kind of information does a company's earnings per share figure provide?
A)Whether the company's total profit has gone up or down
B)Whether the amount of profit generated by one share has gone up or down
C)Whether the market price of a share has gone up or down
D)Whether the company generates more or less profit per sales dollar

Question

Quizplus · Accepted Answer

The earnings per share (EPS) figure provides information on whether the amount of profit generated by one share has gone up or down. It is calculated by dividing the total net income by the number of outstanding shares. By comparing the EPS figures of one year to the next, investors can determine whether the company's profitability has increased or decreased, regardless of the number of shares outstanding or any changes in the market price of a share.

When Comparing a Company's Results from One Year to the Next,what