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    cuteeeeee's Avatar
    cuteeeeee Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 10, 2007, 02:07 PM
    calculating net income
    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's Avatar
    manik chand dey Posts: 63, Reputation: 2
    Junior Member
    		  
    #2

    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)
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