Earnings per share (EPS) = Net Income Available to Common Shareholders/Number of Common Shares Outstanding
$84,000/$400,000 = $0.21 = EPS
Usually, investors compare earnings per share to the market price per share of the stock they own. Is the market price of this stock greater than or less the share price the investors have paid for this stock? Based on the market price, how much should the earnings per share of the stock be? This is how investors evaluate their investments.
Earnings per share is the figure used in the company's price earnings ratio which is used to determine how much investors are willing to pay per share of stock.
Now tihnk about that 1.2 billion Soon to be higher and Higher
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