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How much does a company's earnings per shareholder depend on?

The earnings per shareholder would depend on how much profit the company allots to common shareholders, ranging from 10-200USD. As demonstrated in the example, if a company's earnings per share are 200USD, then investors will be more likely to invest in that company.

Is EPs a good measure of a company's cash flow?

EPS may not provide the fullest measure of a company’s cash flow. The calculation of EPS relies on net income, which includes non-cash expenses such as depreciation and amortization, which are non-cash expenses. So a company may be generating much more cash flow than its EPS numbers suggest.

What is the weighted average number of common shares outstanding?

As a result, the weighted average number of common shares outstanding is 110 million: 100 million shares for the first half of the year and 120 million shares for the second half of the year (100 x 0.5) + (120 x 0.5) = 110.

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