EPS

Question 1

What is formula for basic EPS

Answer 1

BASIC EPS= Net Income-Preferred Div/Weighted Average C/S outstanding

(1.) For Preferred Dividends use current even if not declared

Question 2

In Dilutive EPS how are convertible bond interest expense treated?

Answer 2

Convertible bond interest expense is added back to Net Income (Net of Tax)

Question 3

What is formula for dilutive EPS?

Answer 3

Net income + Interest (net of tax)
Diluted = - ———————————
EPS WACS + WPCS