How can we double Earnings Per Share ?

Expert Solution

In order to double Earnings Per Share (EPS), following steps could be undertaken:

· Improve the Net Profits of the company as compared to its outstanding equity shares in the market because more the profits that the Company enjoys in the market, better the scope of boosting EPS figures.

· Reduce the quantity of shares available in the stock markets by buying back the shares from the market. This will result into lesser quantity of shares while maintaining the Company’s Net Profit figures. As a result, EPS shall increase.

Therefore, through either of the above steps, calculations could be made in a manner that Net profits are increased to the extent that it can double the EPS or the quantity of outstanding equity shares in the market are reduced to the extent that the targeted EPS is achieved. A combination of both the above steps, i.e., increase in net profits and reduction in the quantity of shares, can also help to achieve the same.

keosha answered 4 months ago

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