Chapter 16 Flashcards
(3 cards)
1
Q
EPS formla
A
(net income - preferred dividends)/weighted average number of common shares
2
Q
Weighted average of common shares
A
sum of (# of shares x fraction of the year outstanding) for each group of shares
3
Q
Diluted eps
A
(eps numerator + income adjustments due to dilutive financial instruments)/(eps denominator + newly issuable shares due to dilutive financial instruments)
