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Please name and give the formula for one of the stock market ratios. Describe what this...

Please name and give the formula for one of the stock market ratios. Describe what this ratio can tell you.

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Answer #1

Name: Earnings Per Share (EPS)

Formula: EPS = Net income / Average number of common shares outstanding

Description: This is the income earned by the company for each share of common stock. The higher ratio indicates greater profitability, since the numerator would be higher then.

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