Firms with convertible preferred stock or other potentially dilutive securities outstanding
a. must present dual earnings-per-share amounts.
b. calculate basic earnings per share by taking net income attributable to common stock and dividing by the average number of common shares outstanding during the period.
c. calculate diluted earnings per share when a firm has securities outstanding that, if exchanged for common stock would decrease basic earnings per share by 3 percent or more.
d. all of the above
e. none of the above
D
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Phantom profits result when absorption costing is used and sales exceed production
Indicate whether the statement is true or false
The following income statements are provided for two companies operating in the same industry: FelixCompanyJinxCompanyRevenue $200,000 $200,000 Variable costs (25,000) (70,000) Contribution margin 175,000 130,000 Fixed costs (70,000) (25,000) Net income $105,000 $105,000 Assuming sales increase by $1,000, select the correct statement from the following:
A. Only Felix will experience an increase in profit. B. Felix's net income will be more than Jinx's. C. Felix's net income will increase by $250. D. Jinx's net income will increase by 6%.
Which of the following is the correct expression for calculating the future value of an investment? (r represents the interest rate and n represents the length of time)?
A. ?Future value = Present value × (1 + r)n B. ?Future value = Present value + (1 + r)n C. ?Future value = Present value - (1 + r)n D. ?Future value = Present value / (1 + r)n E. ?Future value = Present value / ((1 + r) × n)
Consideration exchanged for a promise does not require both legal detriment to the promisee and legal benefit to the promisor
Indicate whether the statement is true or false