Common Stock ( Ks ) Essay

1739 Words Dec 2nd, 2015 7 Pages
Security Analysis
Common Stock (KS)
• Earnings Per Share Earnings per share is the portion of a company’s profits distributed to each share of common stock that is outstanding. Earnings per share is calculated by dividing net income by the number of total shares outstanding (Ross 26). Apple Inc.’s 10-K lists earnings per share in two categories, basic a diluted. Basic earnings per share are calculated by dividing available income to common shareholders by the weighted-average number of outstanding common stock during the period. Diluted earnings per share are calculated by dividing available income to common shareholders by the weighted-average number of outstanding common stock during a period of time but it is increased to include additional shares of common stock that would have been outstanding if the potentially dilutive securities were not issued. In 2012 Apple reported basic earnings per share (EPS) of $6.38 and diluted EPS of $6.31. In 2013 the company reported basic EPS of $5.72 and diluted EPS of $5.68, and in 2014 the company reported basic EPS of $6.49 and diluted EPS of $6.45 (10-K. Apple Inc. 2014. 53). Apple Inc.’s earnings per share have maintained a trend of hovering around the same number. The company’s EPS have exceeded Hewlett-Packards by more than double for the previous three years, but Google has nearly double the EPS share reported by Apple during the same periods (“Revenue and EPS Summary”). In Apple’s most recent quarter…

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