# How do you work out the earnings per share?

topcat
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Do we even need to know it for 2013 updated exams because i can not find it any of the books?

Been doing the 2010 practice papers

The question which has puzzled me is the 2010 Finical Statements Q2.1 "earnings per share" can not working it out at all

thanks

Been doing the 2010 practice papers

The question which has puzzled me is the 2010 Finical Statements Q2.1 "earnings per share" can not working it out at all

thanks

## Comments

136Registered136Registered452Registered794Registered2,034Registered, ModeratorThis ratio is the amount each share has earned for the shareholder

So find the profit available to be distributed to the ordinary shareholders (if there are preference shareholders this is after their dividend has been paid) and is definitely after tax

And divide it by the number of shares in issue during the year (this might have to be a weighted average if their has been a share issue during the year)

This topic is a whole 3 hour lecture at CIMA F2 so I can't imagine an AAT exam going into any more detail than coojee gave (and I've repeated above).

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