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Frauds and Scams > Earnings Per Share (EPS)

The following information is about Earnings Per Share (EPS).

Earnings Per Share (EPS) Defined

Amount of a corporation's earnings that are apportioned to each outstanding share of common stock. It is calculated by dividing net income minus preferred dividends and bond interest by the number of outstanding common shares. If all common stock equivalents--such as convertible bonds, preferred stock, rights and warrants--have been exchanged into common stock, earnings per share is considered to be "fully diluted."

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