Homework Answers
| Basis EPS = | Net income after tax/ Total no. of shares outstanding |
| Net income after tax = | Net income - tax on income |
| 2018 | $240-( $240*40%) = $144 |
| 2019 | $250-( $250*40%) = $150 |
| Basis EPS = | Net income after tax/ Total no. of shares outstanding |
| 2018 | $144/390 |
| .37 EPS | |
| 2019 | $150 / 390 |
| .38 EPS | |
| Compute diluted earnings per share for 2018 | |
| Net income after tax for 2018 | $240-( $240*40%) = $144 |
| Diluted shares = | 390+20 = 410 |
| Diluted EPS | $144/410 |
| 0.35 EPS | |
| Compute diluted earnings per share for 2018 | |
| Net income after tax for 2019 | $250-( $250*40%) = $150 |
| Diluted shares = | 390+20 = 410 |
| Diluted EPS | $150/410 |
| 0.37 EPS |
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