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What is the formula for calculating basic EPS?

EPS is short for earnings per share. Basic earnings per share (EPS) is a general calculation that can be used as a measurement to quantify the amount of a company’s profit that can be allocated to one share of its stock. Basic EPS is used for entities that issue only common stock.

Basic EPS will be presented on the income statement for continuing operations as well as on the face of the income statements. The formula for calculating basic EPS is:


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