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EPS Slides

For the year ended December 2018, B Ltd reported net income of Rs 1.75 million. The company had an average of 500,000 shares of common stock outstanding and 20,000 shares of convertible preferred stock, with each preferred share convertible to 3 shares of common stock. The question asks to calculate the company's basic and diluted EPS.

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AHSAN IQBAL
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41 views

EPS Slides

For the year ended December 2018, B Ltd reported net income of Rs 1.75 million. The company had an average of 500,000 shares of common stock outstanding and 20,000 shares of convertible preferred stock, with each preferred share convertible to 3 shares of common stock. The question asks to calculate the company's basic and diluted EPS.

Uploaded by

AHSAN IQBAL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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EARNING

PER SHARE
What is Basic EPS
For the year ended 31 December 2018, Shop
Ltd had net income of Rs1.95 million. The
company had an average of 1.5 million shares of
common stock outstanding, no preferred stock.
And no convertible securities.
a) What is company's weighted number of average Shares
b) What is basic EPS
3

For the year ended December 2018, Angle Ltd


has net income of Rs 2.5 million. The company
declared and paid Rs200,0000 of dividends on
preferred stock. The company also had the
following common stock share information.
 Share outstanding on 1 Jan 2018 1,000,000
 Shares issued on 1 Apr 2018 200,000
 Shares repurchased(treasury shares)Oct 1, 18 100,000
What is Basic EPS
4

For the year ended December 2018, Angle Ltd


has net income of Rs 2.5 million. The company
declared and paid Rs200,0000 of dividends on
preferred stock. The company also had the
following common stock share information.
 Share outstanding on 1 Jan 2018 1,000,000
 Shares issued on 1 Apr 2018 200,000
 Shares repurchased(treasury shares) 100,000
 On December 1, 2018 the company institutes a 2 for 1 stock split. Each
shareholder receives two shares in exchange for each current share that
he/she owns
a) What is company's basic EPS
b) What is diluted EPS
5

For the year ended December 2018, B Ltd has


net income of Rs 1.75 million. The company
had an average of 500,000 shares of common
stock share outstanding, 20,000 shares of
convertible preferred, and no other
potentially dilutive securities. Each share of
preferred pays a dividend Rs10 per share, and
in each is convertible into five shares of
company's common stock.
a) What is company's basic EPS
b) What is diluted EPS
6

For the year ended December 2018, P Ltd has


net income of Rs 0.75 million after paying tax
@ 30%. The company had an average of
690,000 shares of common stock share
outstanding, Rs50,000 of 6% convertible
bonds. Bonds are convertible into total of
10,000 shares.
a) What is company's basic EPS
b) What is diluted EPS
7

For the year ended December 2018, B Ltd has


net income of Rs 1.75 million. The company
had an average of 500,000 shares of common
stock share outstanding, 20,000 shares of
convertible preferred, and no other
potentially dilutive securities. Each share of
preferred pays a dividend Rs10 per share, and
in each is convertible into three shares of
company's common stock.
Thank you

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