zwu,
It seems you can never understand the identity
Actually I understand equity.
You however, don't understand equity.
ROE x EQPS = EPS
That equation is erroneous.
Look, by definition
ROE (return on equity)
= total-return / total_equity
= return_per_share / equity_per_share
= return_per_share / EQPS
Wrong. Utterly wrong.
Because that's not even the correct definition of ROE.
The definition of ROE is: Net Income
ROE = ------------
Total Equity
It is NOT Total Return
ROE = ------------
Total Equity
because a return is expressed as a percentage.
Income on the other hand is expressed as a dollar amount.
Haha !
So
ROE x EQPS
= (return_per_share / EQPS) x EQPS
= return_per_share
= earnings_per_share
= EPS
End of proof.
No, the definition of EPS is: Net Income
EPS = ----------------
Total ->Shares<-
The only proof here is your disgraceful lack of understanding the difference between Equity and Earnings.
Any more kindergarten-style questionss?
Sure.
What is the difference between Equity and Earnings ?
Hmm ?
