Question
GHI Technologies has the following information for the year 2023: Net Income: $50,000 Preferred Dividends: $5,000 Number of Common Shares Outstanding: 10,000 Requirements: Calculate the
GHI Technologies has the following information for the year 2023:
Net Income: $50,000
Preferred Dividends: $5,000
Number of Common Shares Outstanding: 10,000
Requirements:
Calculate the earnings per share (EPS).
Determine the diluted EPS assuming 1,000 stock options are exercisable at $10 each and the current market price is $20.
Assess the impact of preferred dividends on EPS.
Evaluate the overall profitability of the company.
Provide recommendations for increasing EPS.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
