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Financial Statements

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  4. What is Earnings Per Share (EPS) as it relates to Financial Statements ?

What is Earnings Per Share (EPS) as it relates to Financial Statements ?

The EPS represents the number of dollars earned on behalf of each outstanding share of common stock. Earnings available for common stockholders divided by the number of shares of common stock outstanding = EPS. EPS is an amount earned on behalf of each share outstanding. It does not represent the amount of earnings actually distributed to shareholders.

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