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10 Cards in this Set
- Front
- Back
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Basic EPS calculation |
Net earnings available to common share holders divided by weighted average common shares outstanding |
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Net earnings available to common shareholders = |
Net income less preferred share dividends |
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WACSO table 6 columns |
1. Date 2. Activity 3. Shares outstanding 3. Adjustment factor 4. Fraction of year 5. WACSO (3*4*5) |
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Diluted EPS formula |
Net earnings available to CS holders + income effect of dilution divided by WACSO + dilution |
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Diluted EPS calculation step 1 of 5 |
Calculate EPS |
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Diluted EPS calculation step 2 |
Identify all dilutive items |
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Diluted EPS calculation step 3 |
Calculate incremental dilution for each |
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Diluted EPS calculation step 4 |
Order the incremental by size |
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Diluted EPS calculation step 5 |
Compute EPS largest first one by one Income effect ÷ share effect |
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Calculate income impact of dilution (bonds) |
Bond CV * interest rate * ( 1 - tax rate ) |
