{"id":57718,"date":"2024-04-16T01:06:51","date_gmt":"2024-04-16T01:06:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57718"},"modified":"2024-04-16T01:06:51","modified_gmt":"2024-04-16T01:06:51","slug":"in-order-to-calculate-eps-profit-after-tax-and-preference-dividend-is-divided-by","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-order-to-calculate-eps-profit-after-tax-and-preference-dividend-is-divided-by\/","title":{"rendered":"In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:"},"content":{"rendered":"

[amp_mcq option1=”MP of Equity Shares” option2=”Number of Equity Shares” option3=”Face Value of Equity Shares” option4=”None of the above” correct=”option2″]<\/p>\n

The correct answer is: B. Number of Equity Shares.<\/p>\n

Earnings per share (EPS) is a measure of a company’s profitability. It is calculated by dividing the company’s net income by the number of outstanding shares.<\/p>\n

Net income is the company’s total revenue minus its total expenses. The number of outstanding shares is the total number of shares that are owned by shareholders.<\/p>\n

EPS is a useful metric for investors because it allows them to compare the profitability of different companies. It is also used to calculate the price-to-earnings ratio (P\/E ratio), which is a measure of a company’s valuation.<\/p>\n

The other options are incorrect because they do not represent the total number of shares that are owned by shareholders.<\/p>\n

A. MP of Equity Shares is the market price of an equity share. It is not the total number of shares that are owned by shareholders.<\/p>\n

C. Face Value of Equity Shares is the nominal value of an equity share. It is not the total number of shares that are owned by shareholders.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”MP of Equity Shares” option2=”Number of Equity Shares” option3=”Face Value of Equity Shares” option4=”None of the above” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-57718","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\nIn order to calculate EPS, Profit after Tax and Preference Dividend is divided by:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-order-to-calculate-eps-profit-after-tax-and-preference-dividend-is-divided-by\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" 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