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    christina_marie's Avatar
    christina_marie Posts: 1, Reputation: 1
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    #1

    Sep 7, 2010, 10:41 AM
    What is the basic EPS? What is the diluted EPS?
    A company had the following changes in its common stock shares outstanding for 2009:
    January 1st: Beginning balance of 90,000
    April 1st: Issued 30,000 shares for cash
    July 1st: purchased 39,000 shares
    November 1st: Issued 60,000 shares for cash

    The company had a net income of $800,000. Also, it has 50,000 preferred common stock with 3% preferred dividends and each is convertible into 4 common shares.

    What is this company’s weighted average number of shares outstanding?
    What is the basic EPS?
    What is the diluted EPS?

    Suppose that on December 31st the company had 3 to 1 split. What is the basic and diluted EPS?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 7, 2010, 07:42 PM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

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