EPS

Revision question on calculation of earnings per share.

i) The issued share capital of Mbeya Trust, a publicly listed company on the Dar es Salaam Stock Exchange, on 31st March 2013 was TZS 10 million. Its shares are denominated at TZS 25 each. Mbeya Trust’s earnings attributable to its ordinary shareholders for the year ended 31st March 2013 were also TZS10 million, given an earnings per share of … Read the rest

Four (4) limitation of earning per share (EPS) reporting

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability. Despite the number of advantages related to earning per share reporting there are several limitations associated with earning per share reporting.



The following are limitation

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Five (5) Advantages of earning per share (EPS) reporting

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.



The following are some of the advantages of earning per share:

  • It is the medium through which the EPS of different entities are compared; 
  • It
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