Eps Example - 116,750 Shares outstanding 1,500,000 Shares...

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Fina 470 Earnings per Share Calculation Background: Company has outstanding shares of 1,500,000 Current market price at period end 10.00 Earnings for the Year 2010 450,000 Stock Options issued in the following years: Year Shares Option Price 2008 225,000 6.50 2009 100,000 8.50 2010 50,000 10.50 375,000 Expected Proceeds Options in the money: 2008 325,000 6.50 2,112,500 2009 20,000 8.50 170,000 345,000 2,282,500 Shares to be repurchased 228,250 10 2,282,500 Additional shares used for calculation
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Unformatted text preview: 116,750 Shares outstanding 1,500,000 Shares used in calculation 1,616,750 Earnings 450,000 Earnings per share $0.278 Basis EPS 1,500,000 450,000 $0.300 Diluted EPS 1,616,750 450,000 $0.278 $0.022 Earning Multiple 15 Impact on Stock Price $0.32 What is the "Over Hang" ? Options outstanding 375,000 Shares outstanding 1,500,000 Over Hang 25% Original Overhang - 2008 225,000 1,500,000 15% 2009 325,000 1,500,000 22% 2010 375,000 1,500,000 25%...
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