Ask Experts Questions for FREE Help !
Ask
    jenhawk's Avatar
    jenhawk Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 15, 2007, 10:14 PM
    calculate earnings per share
    Net income = $182
    ... Year1... Year2
    Preferred stock, $5 par, 15%... $120... $120
    Common stock, $10 par... $220... $220
    Additional paid-in capital-common stock... $110... $110
    Retained earnings... $1050... $940
    Ttl stockholders' equity... $1500... $1390
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member
    		  
    #2

    Jun 18, 2007, 04:53 AM
    I don't have any calculators on hand so just follow the instructions.

    If it is BASIC earnings per share

    We assume that the prefference shares are not converted (if the preference shares are convertible) into common shares.

    ADD:

    APIC+Retained Earnings+Net Income=??

    DEDUCT:

    Prefference rate. Xxx

    DIVIDE it by the number of shares outstanding.

    If it is DILLUTED earnings per share:

    First convert the prefference share and we assume the conversion happened on the beginning of the year.

    Add

    APIC+RE+NI

    Divide

    Common shares outstanding+prfference shares converted to common shares.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Calculate retained earnings [ 2 Answers ]

If a corporation has assets of $250,000, liabilities of $70,000, and capital stock of $120,000, what is the amount of retained earnings?

Calculate earnings per share [ 2 Answers ]

Quark company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders during the current year. Quark had 12,500 weighted-average shares of common stock outstanding for the year. Calculate the company's earnings per share.

Basic earnings per share and diluted earnings per share [ 1 Answers ]

:confused: what is the different between Basic earnings per share and Diluted earnings per share :confused:

View more questions Search