Earnings per share is the dollar amount earned by each share, not the actual amount given to shareholders in the form of dividends.

Question

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Earnings per share (EPS) is a measure of a company's profitability and is calculated as the total earnings divided by the number of outstanding shares. It indicates how much profit a company has generated for each share of its stock. EPS does not represent the actual amount of money paid out to shareholders in the form of dividends.

Earnings Per Share Is the Dollar Amount Earned by Each