Summary Financial Management Formula Guide + Cheat Sheet

Financial Management Formulas, Examples and Questions by Yara Fadi Elbechara




1. Earnings Per Share (EPS)



Formula:

EPS = Net Income/Shares

Meaning: Measures profit earned per share of stock.

Higher EPS = more profitable.

Example:

Net Income = 100,000;

Shares = 10,000 → EPS = 10.

Practice Question:

Net Income = 60,000;

Shares = 5,000 → EPS =?

(Answer: 12)




1

, Financial Management Formulas, Examples and Questions by Yara Fadi Elbechara




2. Dividends Per Share



Formula:

DPS = Dividends/Shares

Meaning: Shows how much dividends each share receives.

Example:

Dividends = 20,000;

Shares = 5,000 → DPS = 4.

Practice Question:

Dividends = 45,000;

Shares = 9,000 → DPS =?

(Answer: 5)




2