Earning Per Share

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    How do I calculate Average growth rate of earning per share reference Question 1 of Exam December ( part B) 2008.

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    John Moffat

    I am surprised you are asking because presumably you have seen from the answer how to do it (and we do it in exactly the same way as we calculate the average growth rate in dividends, which is covered (and explained) in the free lectures).

    We take the fourth root (because there are four years growth) of (latest EPS / earliest EPS) and then subtract 1 from the result.

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