Differentiate between Earnings per share (EPS) and dilute Earnings per share (D-EPS).
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29-09-2020 - |
Question
Differentiate between Earnings per share (EPS) and dilute Earnings per share (D-EPS).
The major differences between Earnings per share (EPS) and dilute Earnings per share (D-EPS) are as follows −
Earnings per share (EPS) | Dilute Earnings per share (D-EPS) |
---|---|
Basic earnings per equity share of a company is calculated. | Calculates earnings per convertible share of a company. |
Main purpose is to calculate profitability of a company. | Main purpose is to calculate profitability of a company which includes convertible securities. |
Less significance. | More significance. |
Common shares are included in calculations. | Common shares, preferred shares, debt etc. are included in calculations. |
More value of measure. | Less value of measure. |
Easy to calculate. | More complicated to calculate than EPS. |
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