ACC 514 Study Guide - Dividend, Issued Shares, Deferred Income
11 Aug 2013
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If loss from discontinued operations net of tax, add back to ni then find eps. 3. 00 (ni + loss net of tax) / wac (loss of tax) / wac. Non cumulative & not declared = do nothing; Cumulative = deduct one year whether declared or not only deduct declared dividends. Simple capital structure only common & preferred shares issued &/or debt with no conversion rights. Complex capital structure common shares + dilutive securities issued (potential common share) Anti-dilutive securities if increase basic eps = not reported. = (1 tax) * interest * time issued. Wac shares adjusted by additional common shares issued (add to current # shares) Diluted eps = adjusted net income / adjusted wac shares. If multiple securities, order from most dilutive to least; most dilutive = smallest eps for that security. Exercise price of an option (for one share of stock) $ 30. Market price of one share at exercise date: $ 50.
