EPS

Question 1

Basic EPS

Answer 1

computed on common shares outstanding and NI

Question 2

Diluted EPS

Answer 2

Assumes all potential common stock equivalents (stock options and other securities) are converted

Question 3

Formula for Basic EPS

Answer 3

(NI - Preferred Stock dividends) / (weighted avg shares of common stock)

Question 4

Formula for Diluted EPS

Answer 4

(NI - Preferred Stock dividends +- addj to NI for assumed conversion of PCS) / (weighted avg shares of common stock outstanding + shares from assumed conversion of PCS)

Question 5

Annual Preferred Dividend cash calculation

Answer 5

of shares X par X interest rate