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DILUTED E.P.S ARE CALCULATED WHEN THERE ARE POTENTIAL ORDINARY SHARES IN CAPITAL STRUCTURE OF THE COMPANY.
(POTENTIAL ORDINARY SHARES ARE THOSE FINANCIAL INSTRUMENTS WHICH ENTITLE TO ITS HOLDER THE RIGHT TO ACQUIRE ORDINARY SHARES LIKE CONVERTIBLE DEBENTURE, CONVERTIBLE PREFERENCE SHARES,OPTIONS, WARRANTS ETC.)
BASIC E.P.S MEASURES ONLY HOW MUCH A COMPANY EARNS PER SHARE WITHOUT GOING TO ANY OTHER DETAILS (IT DOES NOT CONSIDER CONVERTIBLE SECURITIES...)
CONSIDERATION OF CONVERTIBLE SECURITIES ARE VERY IMPORTANT FROM THE POINT OF VIEW OF INVESTORS
WITH THE HELP OF DILUTED EPS DATA INVESTOR CAN DETERMINE HOW WOULD BE THE EPS IF CONVERTIBLE SECURITIES WERE CONVERTED IN TO STOCKS. (IT PROVIDES WORST SCENARIO FOR EPS)
explain why investors should be more interested in the Diluted EPS number than the Basic EPS...
: basic and diluted EPS. Basic E On a firm's income statement, you likely will see two entries for earnings per share (EPS): basic and diluted EPS. Basic EPS is the firm's net income available to shareholders divided by the number of shares of common stock. However, while common shares are definite claims of an owner's equity, unexercised stock options, convertible debt and preferred stock, and warrants represent potential claims on an owner's equity. If they are exercised or converted,...
Diluted earnings per share (EPS) are found by adjusting basic EPS for the impact of converting all convertibles and exercising all warrants and options that would have diluting effects on a firm's earnings. True or False
Should accounting include more than monetary units? Discuss why a company's stockholders might be interested in its environmental and social performance. Next, determine the critical pieces of information companies are providing and why this information is important from the perspective of the different stakeholders.
Don't know how to get the value in blue to get diluted EPS from each operation Delicious Subs Ltd. (DSL) was incorporated on January 1, 2021. Its capital structure includes 9,000 ordinary shares; 1,800, $60,2% cumulative preferred shares; and 3,500 options on ordinary shares with a strike price of $12. DSL's net income (loss) for the year ended December 31, 2021, was ($13,000), consisting of a profit from continuing operations of $40,000 and a loss from discontinued operations of ($53,000)....
why switching on strings more expensive than switching basic data types?（Be specific）
8. If dividends are taxed more heavily than capital gains, investors: a) Should pay more for stocks with low dividend yields b) Should pay more for stocks with high dividend yields c) Should pay the same for stocks regardless of the dividend yields d) Cannot be predicted as stock prices fluctuate randomly 9. Firm Alpha has a value of £300 million and Firm Beta has a value of £200 million. Merging the two companies would allow cost savings with a...
Explain why investors look at a stock’s P/E ratio rather than its price to determine if the stock is cheap or expensive?
what does Non cumulative preferred stock do to basic eps please explain
Justify with structure why arginine (pI=) is a more basic amino acid than histidine (pI=) is.
A manufacturer of electric power transmission and distribution equipment more than doubled its EPS by changing depreciation methods. In justifying the change, management supported the change as follows: In comparison to direct competitors, the previous depreciation method was more conservative and thus had a negative impact on earnings. Although difficult to prove, there is considerable evidence that accounting changes are made for reasons other than improved financial reporting. GAAP are flexible in the initial selection of accounting methods and in...