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Interest earned from surplus can be significant for company’s earning. The company might need forecast of its interest earning in order to indicate its “prospective earnings per share” to stock market analyst and institutional investors.
What is meant by prospective earning per share?Prospective = expected or estimated.
EPS is a common financial indicator and is the income available to ordinary shareholders (after tax and preference dividends) divided by number of ordinary shares.
Prospective = expected or estimated.
EPS is a common financial indicator and is the income available to ordinary shareholders (after tax and preference dividends) divided by number of ordinary shares.
Budget = plan
Forecast = what is likely to happen
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