Earnings per Share (EPS) shows profits available to whom?

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Multiple Choice

Earnings per Share (EPS) shows profits available to whom?

Explanation:
Earnings per share is a per-share profitability measure that shows how much profit is available to ordinary shareholders for each share outstanding, after any dividends owed to preferred shareholders are subtracted. This focus on what remains for ordinary shareholders makes EPS a key way to gauge the profitability attributable to those ordinary shares, rather than the total profits of the company or the cash being generated. It does not represent cash flow, and it does not directly determine or equal the market price of the stock. It also isn’t total profits, since it is expressed on a per-share basis.

Earnings per share is a per-share profitability measure that shows how much profit is available to ordinary shareholders for each share outstanding, after any dividends owed to preferred shareholders are subtracted. This focus on what remains for ordinary shareholders makes EPS a key way to gauge the profitability attributable to those ordinary shares, rather than the total profits of the company or the cash being generated. It does not represent cash flow, and it does not directly determine or equal the market price of the stock. It also isn’t total profits, since it is expressed on a per-share basis.

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