Quiz 13: P13: Earnings Per Share EPS

Business

Worksheet showing earnings per share for the company: img

Worksheet showing earning per share: img Basic earnings per share is calculated by taking net income less dividend requirements, which in this case is 8% for preferred stock, and dividing it by the weighted average common shares outstanding. Diluted earnings per share is calculated the same way except outstanding preferred stock is converted into outstanding common stock and added to the weighted average common shares outstanding.

Worksheet showing earnings per share for 2012: img Basic earnings per share is calculated by taking net income less dividend requirements, which in this case is 8% for preferred stock, and dividing it by the weighted average common shares outstanding. Diluted earnings per share is calculated the same way except outstanding preferred stock is converted into outstanding common stock and added to the weighted average common shares outstanding.

Related Quizzes