ADMN 3321H Lecture Notes - Lecture 5: Capital Structure, Financial Statement, Income Statement

• School: Trent University
• Department: Business Administration
• Course: ADMN 3321H
• Professor: Peggy Wallace

Document Summary

Understand why eps is an important number. Understand when and how eps must be presented, including related disclosures. Calculate eps for companies with a simple capital structure. Calculate eps for companies with a complex capital structure. Understand how analysis helps users of financial statements assess performance. Basic and fully-diluted (what if?: what the eps would be if the hybrids fell. Presentation (ifrs: basic and fully-diluted on face of income statement, continuing operations, discontinued operations and net income. Disclosure (ifrs: eps for all periods, adjusted/restated for stock dividends, stock splits and prior period adjustments. Simple consists of: common and preferred shares (if any issued) Complex consists of: common shares, potential common shares, convertible preferred shares, convertible debt, options / warrants, contingently issuable shares. Be17-1, be17-2, e17-1, e17-3 simple capital structure. Options, forwards and futures: similarities and differences.