Do you buy and sell shares on the stock exchange?

Calculate the earnings per share based on the total net income, preferred dividends paid and the number of outstanding common shares.

Investors want to know the income they generate from a share. Earnings per share denotes the money you would earn for owning each share of common stock. This figure is used to assess the viability of stock prices. A higher earning per share indicates that a company has better profitability.

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