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Net Income per Share of Common Stock |
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Net income per share of common stock See: Earnings per share Net Income per Share In a given fiscal year, a publicly-traded company's profit divided by the number of shares outstanding. This is considered the single most important aspect in determining a share's price and value, because the calculation of earnings per share shows the amount of money to which a shareholder would be entitled in the event of the company's liquidation. In general, earnings per share apply only to common shares. It is calculated thusly: Earnings per share = (net income - preferred dividends) / average shares outstanding. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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