25．Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst gathered the following information about a company whose fiscal year ends on 31 December: Net income for the year was $10.5 million. Preferred stock dividends of $2 million were paid for the year. Common stock dividends of $3.5 million were paid for the year. 20 million shares of common stock were outstanding on 1 January 2002. The company issued 6 million new shares of common stock on 1 April 2002. The capital structure does not include any potentially dilutive convertible securities, options, warrants, or other contingent securities. The company's basic earnings per share for 2002 was closest to:
Select exactly 1 answers from the following: A. $0.35. B. $0.37. C. $0.43. D. $0.46.
答案和详解如下！
Feedback: Correct answer: A
2006 CFA Level I Program Readings, 揇ilutive Securities and Earnings per Share,?Ch. 16, pp. 788?01, Intermediate Accounting, 11th edition, Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield (Wiley, 2004), pp. 301-302 2006 Modular Level I, Vol. II, pp. 695-696 Study Session 8-36-a differentiate between simple and complex capital structures for purposes of calculating earnings per share (EPS), describe the components of EPS, and calculate a company抯 EPS in a simple capital structure
Basic earnings per share is equal to income available to common stockholders divided by the weighted average number of common shares outstanding: ($10,500,000 ?$2,000,000) / 24,500,000 shares = $0.35. | 
发表于 2006-11-22 10:59
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