How to Calculate Earnings Per Share in Excel 2007


show more Calculating earnings per share provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
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Calculating earnings per share

Investors can make money by purchasing stock in companies that pay dividends on a per share basis. Companies that pay dividends regularly, such as every quarter, decide how much money they want to distribute to shareholders and make that payment after the quarter ends. To calculate Earnings per Share, you divide the income to be paid to shareholders of common stock by the number of outstanding shares. As you can see here in our worksheet, we have 45 million shares. This is 45,000, but because all values are in thousands, we have 45000x1000, which is 45 million outstanding shares.

We also have the net income available for shares of common stock, which is 18000x1000 or 18 million. So then to find the Earnings per Share, you create a formula that divides the Income Available for Common Shares, which is in B6, by the number of Outstanding Shares, which is in B5, press Enter and you have an earning of 40 cents per share. There are some factors you should take into account when you're evalu...

Calculating earnings per share
Video duration: 1m 54s 2h 18m Intermediate

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Calculating earnings per share provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis

Subject:
Business
Software:
Excel
Author:
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