For calculating EPS, the following order will be followed.A. Calculate number of equity sharesB. Calculate earning available for equity share holdersC. Compute profit after taxD. Compute EPSChoose the correct answer from the options given below:a)C, B, A, Db)A, B, C, Dc)B, A, C, Dd)C, A, B, DCorrect answer is option 'A'. Can you explain this answer?

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For calculating EPS, the following order will be followed.

A. Calculate number of equity shares
B. Calculate earning available for equity share holders
C. Compute profit after tax
D. Compute EPS

Choose the correct answer from the options given below:

a)
C, B, A, D
b)
A, B, C, D
c)
B, A, C, D
d)
C, A, B, D

Correct answer is option 'A'. Can you explain this answer?

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Most Upvoted Answer

For calculating EPS, the following order will be followed.A. Calculate...

The correct order for calculating EPS (Earnings per Share) is option A:

C. Compute Profit After Tax

The first step in calculating EPS is determining the company's profit after tax (PAT). This is the net income that the company has earned after deducting all expenses and taxes.

B. Calculate Earnings Available for Equity Shareholders

Next, you need to calculate the earnings available for equity shareholders. This is done by subtracting the dividend paid on preference shares (if any) from the PAT.

A. Calculate Number of Equity Shares

Now, you need to find out the total number of outstanding equity shares of the company. This information can be found in the company's annual report or financial statements.

D. Compute EPS

Finally, you can calculate the EPS by dividing the earnings available for equity shareholders by the total number of outstanding equity shares.

EPS = Earnings Available for Equity Shareholders / Number of Equity Shares
By following this order, you can accurately calculate the Earnings per Share for a company, which is a key financial metric used by investors to evaluate the profitability of a company.

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For calculating EPS, the following order will be followed.A. Calculate number of equity sharesB. Calculate earning available for equity share holdersC. Compute profit after taxD. Compute EPSChoose the correct answer from the options given below:a)C, B, A, Db)A, B, C, Dc)B, A, C, Dd)C, A, B, DCorrect answer is option 'A'. Can you explain this answer?

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