Earning per Share Answer the questions and post the solution at the discussion forum Calculate the EPS In the following problem. Company P has internally generated net income of $200,000 (excludes share of subsidiary income). Company P has 100,000 shares of outstanding common stock. Subsidiary S has a net income of $60,000 and 40,000 shares outstanding common stock. What is consolidated basic EPS if: a. Company P owns 100% of the Company S shares? b. Company P owns 80% of the Company S share

What is the formula for the computation of EPS for a subsidiary?

Explain in details each component of the formula in the calculation of the EPS.