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dmsaez
Mar 2, 2007, 08:09 PM
I have looked all over but I can not find what the discontinued operations impact on earnings per share is???HELP!

Can anyone point me in the right direction?:confused:

CaptainForest
Mar 2, 2007, 10:33 PM
When you discontinue a business, it is either at a loss or a gain. That will either decrease or increase the EPS. Most likely when you discontinue a business, it is at a loss.

EXAMPLE:

Income Statement Presentation of EPS Components Earnings per share:

Income from continuing operations....................$4.00
Loss from discontinued operations, net of tax.......(.60)
Extraordinary gain, net of tax.............................1.00
Net Income..................................................$4.40