How equity-based compensation affects EPS
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Description
Abstract: No single number can fully reflect a company’s financial performance. But public company investors generally believe that earnings per share (EPS) comes close. This article explains how equity-based compensation programs affect calculation of EPS. It also makes a distinction between basic and diluted EPS and discusses how stock options and restricted stock affect EPS. A sidebar offers an example of the role that equity-based compensation plays.
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