PREFERRED+STOCK+INFLUENCE+ON+EPS+Homework+Solution

PREFERRED+STOCK+INFLUENCE+ON+EPS+Homework+Solution -...

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PREFERRED STOCK INFLUENCE ON EPS Homework Solution Assumption (a) Assumption (b) Case Year Basic EPS Diluted EPS Basic EPS Diluted EPS 1 1 $2.00 $2.00 $2.00 $1.11 2 $2.40 $2.40 $2.40 $1.67 2 1 $1.40 $1.40 $1.40 $1.11 2 $2.40 $2.40 $2.40 $1.67 Calculations: Assumption (a) Assumption (b) Case Year Basic EPS Diluted EPS* Basic EPS Diluted EPS 1 1 $20,000/10,000sh. $20,000/10,000sh. $20,000/18,000sh. 2 $24,000/10,000sh. $24,000/10,000sh.
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Unformatted text preview: $30,000/18,000sh. 2 1 $14,000/10,000sh. $14,000/10,000sh. $20,000/18000sh. 2 $24,000/10,000sh. $24,000/10,000sh. $30,000/18,000sh. *Same as Basic EPS In Case 1 (non-cumulative) the earning adjustment is the amount of dividends declared, whereas, in Case 2 (cumulative) it is the preferred yearly stipulated dividend rate....
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This note was uploaded on 08/02/2011 for the course ACCT 352 taught by Professor Freeman during the Summer '11 term at Windsor.

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PREFERRED+STOCK+INFLUENCE+ON+EPS+Homework+Solution -...

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