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Net Income Applicable To Common Shares

 

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The net income applicable to common shares is the bottom-line profit the company reported. To get the basic earnings-per-share (Basic EPS) figure, analysts divide the net income by the total number of shares outstanding.

The last line, at the bottom of the income statement, is the amount of money the company said to have made (net income, total profit, or reportable earnings; it’s all the same). Hence the cliché, “what’s the bottom line?”


Ricky Schmidt

Dec. 16, 2005

 

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