26 November 2014
While calculating Earning per share(EPS) we divide profit after tax by number of shares. So,in this formula the number of shares includes preference shares and equity shares both or only equity shares ?
26 November 2014
no, only equity shares shall be included as in the numerator we remove the div to be payable to pref shareholders and the numerator is only profit for eq share holders.
CAclubindia
