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EPS Calculation for XYZ Company by GolamMostafa is a document available to read on EtoBox.

XYZ Company reported $2,234,000 in net income for the year. After paying cumulative preferred dividends of $1,600,000, $634,000 was available to common shareholders. With 800,000 common shares outstanding, basic earnings per share was $0.79. For diluted EPS, the 400,000 preferred shares were converted to their common share equivalent of 2,000,000 shares, bringing the total shares outstanding to 2,800,000 and resulting in a diluted EPS of $0.80.

Author

GolamMostafa

Language

EN