Answer in Statistics and Probability for Jamilah #231639

a.). EPS = “\frac{Net\; Income}{Outstanding\; Shares}”

EPS 2019:

Don't use plagiarized sources. Get Your Custom Essay on
Answer in Statistics and Probability for Jamilah #231639
Just from $13/Page
Order Essay

Net income 2019 = 330,000

Income tax 2019 = 30“\% \times” 330,000 = 99,000

Net Income after tax = 330,000 – 99,000 = 231,000

Total outstanding shares 2019 = 100,000 shares

EPS 2019 = “\frac{231,000}{100,000} = 2.31”

EPS 2019 = K2.31


EPS 2020:

Net income 2020 = 250,000

Income tax 2019 = 30“\% \times” 250,000 = 75,000

Net Income after tax = 250,000 – 75,000 = 175,000

Total outstanding shares = 100000 + 50000 = 150,000 shares

EPS 2019 = “\frac{175,000}{150,000} = 1.17”

EPS 2020 = K1.17


b.). EPS for the comparative company: Zambia National Commercial Bank plc.

EPS 2019:

Net income 2019 after tax = 200,056,000

Total outstanding shares 2019 = 1,443,750,000 shares

EPS 2019 = “\frac{200,056,000}{1,443,750,000} = 0.14”

EPS 2019 = 0.14


EPS 2020:

Net income 2020 after tax = 206,658,000

Total outstanding shares 2020 = 1,443,750,000 shares

EPS 2020 = “\frac{206,658,000}{1,443,750,000} = 0.14”

EPS 2020 = K 0.14

(c). Explain Stanchart’s performance in 2020

– As comparing the Stanchart’s performance in 2020 with performance in 2019 it is better because the EPS of the company is higher even after issuance of new shares in 2020.

(d). ) 5 reasons for using EPS as a performance measure.

  1. It measure profitability level. Earnings per share is a critical indicator for determining a company’s profitability. In fact, EPS is the only statistic in the whole field of fundamental analysis that separates net income to determine what the shareholders earn by investing in the firm.
  2. It indicates the dividend of Payout. Dividends are a percentage of a company’s profits that are paid out to shareholders. Many investors choose dividends because of the consistent income they provide. Dividends are also seen by investors as a favorable indicator of the company’s future growth.
  3. It is a determines the P/E ratio. Aside from profitability, investors want to know how much value a specific stock adds to their portfolio. The P/E ratio can assist investors in determining the value of their stock holdings. EPS is the most important factor in determining the P/E ratio.
  4. It has high dimensional stability. The higher the EPS, the better the company’s performance and prospects. The business’s growth rate is reflected in the EPS track record over multiple years, and potential investors look forward to investing in the company if they observe an upward trend.
  5. It has a flexible structure. A weighted average of equity shares is determined if the number of equity shares fluctuates during the financial quarter. The number of days or months outstanding during the year determines the weight. Let’s look at an example to assist us comprehend.

(e). 5 limitations of using ratio analysis as a means of assessing the bank’s performance.

  1. To enhance its ratios, the company can make certain year-end modifications to their financial statements. The ratios then become nothing more than window decoration.
  2. Inflationary pricing fluctuations are ignored by ratios. Many ratios are derived based on historical costs, and they ignore price changes between periods. This does not accurately reflect the financial position.
  3. Accounting ratios totally disregard the firm’s qualitative elements. They solely evaluate the financial elements of the situation (quantitative).
  4. There are no universally accepted definitions for the ratios. As a result, various formulas for the ratios may be used by different companies. Current Ratio is one such example, where some companies count all current liabilities while others exclude bank overdrafts from current liabilities when calculating current ratio.
  5. Finally, accounting ratios do not address any of the company’s financial difficulties. They are only a means to an aim, not a complete solution.

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.


Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.


Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.


Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.


Happy Clients


Words Written This Week


Ongoing Orders


Customer Satisfaction Rate

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success


We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now