"M351 Notes-Day 17 Dilutive and EPS 2-23

"M351 Notes-Day 17 Dilutive and EPS 2-23 - M351...

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M351 Notes, Class 17: Dilutive Securities and EPS, pages 811-827 A. Per share amounts are presented as needed for (see Illustration 16-7 on page 812): Income from continuing operations, net of tax Gain or loss from discontinued operations Income before extraordinary items Extraordinary gain or loss, net of tax Net income B. Basic earnings per share is: (Net income - Preferred dividends)/weighted average shares outstanding C. The number of shares outstanding changes when: 1. Common stock is issued (including exercise of stock options, conversion of convertible preferred or convertible debt, issue stock for cash, property, debt or equity securities of other companies) 2. Treasury stock is acquired or sold 3. Stock dividends and Stock splits change shares outstanding from the beginning of the year D. A schedule for calculating weighted average shares outstanding should have the following columns (see Illustration 16-12 on page 814): Dates Shares Fraction Outstanding Outstanding Restatement of Year Product A good example of a typical schedule for calculating weighted average
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This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue University-West Lafayette.

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"M351 Notes-Day 17 Dilutive and EPS 2-23 - M351...

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