By Thomas D. Saler

“Here’s a simple math problem. Let’s assume that that the top number of a fraction (the numerator, which in this case we’ll say represents a company’s profits) is 3. And we’ll pretend the bottom number (the denominator, which in this example represents the number of shares outstanding), is 4. By dividing the earnings by the number of shares, we get 0.75. We’ll call it $0.75 per share.”…

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