EPS information from the 20X3 Foran Resources Corp. financial statements is as follows:

Required:
1. Explain how basic EPS is calculated.
2. Suggest a predicted target for basic EPS for 20X4, based on trends. Justify your choice.
3. Explain the meaning of diluted EPS. What elements must Foran have in its capital structure?
4. Interpret the trend in diluted EPS.

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20X3 20X2 Basic Earnings from continuing operations $3.38 $2.98 Discontinued operations (.27) .13 Net earnings $3.11 $3.11 Diluted Earnings from continuing operations $2.62 $2.75 Discontinued operations (.22) .11 Net earnings $2.40 $2.86