Joined: 24 Oct 2009 Location: United States
Online Status: Offline Posts: 52
Posted: 07 May 2010 at 14:54 | IP Logged
In reporting EPS information, a Co must calculate income available to common stockholders. To do so, the Co subtracts dividends on preferred stock from each of the intermediate components of income (income from continuing operations and income before extraordinary items) and from NI.
In other words, we have
Income from continuing operations
Discontinued operations
Income before extraordinary items (1 mil)
Extraordinary item (1.2 mil)
Net Income
Having said that, we have
1 mil - 1.2 mil - 6,000 div / 344,000 = (0.6)
Dividends
We pay a quarterly dividend of 10 cents per share. At the end of the quarter we have 60,000 shares outstanding. 60,000 x 0.1 = 6,000
Also, we are interested in WA number of shares outstanding during the first quarter.
300,000 shares were outstanding for 2 months (Jan/Feb) out of three. That's why
300,000 x 2/3
312,000 were outstanding for one month out of three (Mar)
So, 312,000 x 1/3
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum
Active Topics 
Memberlist 
Search 
Help
Register 
Login
Topic: BEPS - Really HARD
Topic Closed)
