How to calculate basic EPS
Net Income- preferred dividend/Weighted No.of shares available
dilutive stock options
no effect on dilutive
cumulative
pf for a year only
Computation difficulties for stock dividends and stock splits
ned to to do as if it happened from beginning of the year
what is diluted income per share
net Income adding back the interest expense saved on the bonds net of tax /weighted avg no of shares outstanding.
Dilutive VS Antidilutive
Dilutive advantage Antidilutive disadvantage