DPS AND EPS

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muskanp...@gmail.com

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Sep 16, 2021, 6:59:43 AM9/16/21

to noc21-mg7...@nptel.iitm.ac.in

Hi,

I have a question about what is happening in this video at 00:25:55 -

http://www.youtube.com/watch?v=gA3fQX2GzNw#t=1555s.

What is the difference between DPS and EPS as per shareholders point of view. As far as I think it looks same but still I am unable to understand..

Thanks!

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NOC21 MG75

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Sep 16, 2021, 1:07:09 PM9/16/21

to Discussion forum for Financial Accounting, muskanp...@gmail.com

Dear participant

The DPS stands for Dividend per share which can be calculated as Total dividend paid/ No.of share. EPS stands Earnings per share which can be calculated as Total earnings or PAT / No. of share. From the shareholder's point of view, the EPS indicates the company earnings and DPS indicates the what shareholder gets as a dividend.