Earnings Per Share (EPS)

Answer Key

Year 1 EPS $2.00 per share

Year 2 EPS $1.09 per share

Year 1 reported in Year 2 $1.00 per share
 
 

Company had 202,000 CS shares O/S at 1/1/Y1. Following is info for Year 1 & Year 2. 3 are no potential common shares outstanding. 4 5 2/28/Y1 reacquired 6K shares of treasury stock 6 10/31/Y1 reissued all treasury shares reacquired on 2/28/Y1 7 11/30/Y1 issued 24K new shares 8 12/31/Y1 net income for Year 1 is $400K 9 10 Calculate Basic EPS for Year 1. There