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Basic EPS = Net income available to common stock shares/Weighted average number of
shares outstanding = (32000-2000)/7000 = $ 4.29 Diluted EPS =
32000/(7000+2000*0.5) = $ 4.00 Answer [b]
Solution
Basic EPS = Net income available to common stock shares/Weighted average number of
shares outstanding = (32000-2000)/7000 = $ 4.29 Diluted EPS =
32000/(7000+2000*0.5) = $ 4.00 Answer [b]

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  • 1. Basic EPS = Net income available to common stock shares/Weighted average number of shares outstanding = (32000-2000)/7000 = $ 4.29 Diluted EPS = 32000/(7000+2000*0.5) = $ 4.00 Answer [b] Solution Basic EPS = Net income available to common stock shares/Weighted average number of shares outstanding = (32000-2000)/7000 = $ 4.29 Diluted EPS = 32000/(7000+2000*0.5) = $ 4.00 Answer [b]