Earnings Per Share Learn How to Calculate Basic and Diluted EPS
Net income is the income available to all shareholders after a company’s costs and expenses are accounted for. The net earnings of a company in a given period – i.e. net income (the “bottom line”) – can either be reinvested into operations or distributed to common shareholders in the form of dividend issuances. A company relatively early in its growth curve could post negative earnings per share since it is investing now for future growth. A more mature company could simply have a bad year operationally (as many companies did…
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