Question

Why must a company present both its basic Earnings Per Share figure as well as its...

Why must a company present both its basic Earnings Per Share figure as well as its Dilutive Earnings Per Share in its financial statements?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Johnson Company is computing diluted earnings per share for the current year. The company has...
The Johnson Company is computing diluted earnings per share for the current year. The company has convertible bonds outstanding that have been judged as being anti-dilutive. What is the significance of anti-dilution ? The bonds must be included in the computation of diluted earnings per share Inclusion of the bonds in the computation must be made using the most conservative method Because of the high rate of interest on these bonds, the impact must be separately disclosed within the computation...
Discuss the difference between basic earnings per share and fully diluted earnings per share giving examples...
Discuss the difference between basic earnings per share and fully diluted earnings per share giving examples of items that would make up the difference.
Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is listed...
Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is listed below. Show your calculations.  2. In 100 words, or fewer, explain why investors should be more interested in the the Diluted EPS number than the Basic EPS number. Company X information for Diluted Shares calculations for period 201X: Earnings for Year 201X - $20 million Average Basic shares outstanding for Company X in 201X – 10 million Average Stock Price for year 201X - $6.00...
Share X has Earnings Per Share of 12 and its Present Value of Growth Opportunities is...
Share X has Earnings Per Share of 12 and its Present Value of Growth Opportunities is $101.34. Given a market capitalization rate of 18.85%, and a plowback ratio of 45% calculate the Return on Equity for Share X.
When is a company required to show diluted earnings per share? a) Always b) Only when...
When is a company required to show diluted earnings per share? a) Always b) Only when diluted earnings per share is less than basic earnings per share. c) Only when diluted earnings per share is greater than basic earnings per share. d) Only if the company has other comprehensive loss.
XYZ Ltd is finalising the calculation of its basic earnings per share. The entity has a...
XYZ Ltd is finalising the calculation of its basic earnings per share. The entity has a profit before tax of $20,000,000 and a profit after tax of $14,000,000. It paid a dividend of $1000,000 to preference shareholders out of this profit. The preference shares are classified as equity. XYZ Ltd provides the following details: At 1 July 2019 XYZ Ltd had a total of 5,000,000 ordinary shares on issue. On 1st September 2019, XYZ Ltd issued a further fully paid...
Rogers Company expects earnings per share and dividends per share to be $5.00 and $3.00 respectively...
Rogers Company expects earnings per share and dividends per share to be $5.00 and $3.00 respectively next year. Rogers currently has 10,000,000 shares of common stock outstanding. The company’s capital budget for next year is projected to be $40,000,000. Rogers plans to maintain its present debt ratio (debt to total assets) at 60% next year. (Assume that Rogers’ capital structure includes only common equity and debt and that these will be the only sources of funds to finance capital budgeting...
How do we methodically calculate a firms Earnings per share and Dividend per share from given...
How do we methodically calculate a firms Earnings per share and Dividend per share from given financial statements.
Tung Pet Food Suppliers reported$7,200,000 net income for the current year. The company indicated that it...
Tung Pet Food Suppliers reported$7,200,000 net income for the current year. The company indicated that it has $6,700,000​, 6%convertible debt issued at par and $500,000 par​ value, 5​% nonconvertible, cumulative preferred shares outstanding. The firm did not declare dividends for the current year. It issued the bonds on May 31 and the preferred shares were outstanding for the entire year. Based on this​ information, determine the numerator of the earnings per share fraction for both basic earnings per share and...
The topic number (Topic XXX) that provides the accounting for earnings per share. The specific eight-digit...
The topic number (Topic XXX) that provides the accounting for earnings per share. The specific eight-digit Codification citation (XXX-XX-XX-X) that describes the additional information for earnings per share that must be included in the notes to the financial statements. The specific eight-digit Codification citation (XXX-XX-XX-X) that requires disclosure of transactions affecting the number of common shares outstanding that occur after the most recent reporting period but before the financial statements are issued.