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cuteeeeee
Nov 10, 2007, 02:07 PM
in want to calculate the net income of a company
if I have only the number of shares issued by the company, cost per share, mkt value at the end of the year, and cash dividends, and earning per shre?
how can I find the net income for that company

thankxxxxx

manik chand dey
Jun 27, 2008, 08:18 PM
what I understood by net income is profit after tax.
As we know equity earnings(earnings to be distributed among the equity shareholders) is profit after tax(PAT)- preference dividend(if any).
so as earning per share(EPS) and no of shares are given, so we can easily calculate equity earnings, that is EPS* no of shares.
Now equity earnings+preference dividend= Profit after tax
(Here cash dividends are given)