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Earning Per Share

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Earning Per Share

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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    Posts
  • April 24, 2015 at 4:27 pm #242474
    Salauddin
    Member
    • Topics: 9
    • Replies: 2
    • ☆

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

    April 24, 2015 at 5:48 pm #242495
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    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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