Chapter 23 (Earnings per share)

Question 1

How is basic EPS calculated?

Answer 1

The profit/loss divided by the average number of shares

Question 2

How is the EPS calculation affected by non-controlling interests?

Answer 2

Non-controlling interest is deducted from profit/loss

eller

Non-controlling interest is an adjustment of profit/loss

Question 3

If the company presents discontinued operations, how does it affect the
calculation?

Answer 3

Two EPS must be calculated, including and excluding discontinued operations

Question 4

If a company has 1000 shares at the 1 January 20X1 and issues 500 shares at the
30th of June and consequently has 1500 share at 31st of December 20X1 - what is
the weighted average number of shares for 20x1?

Answer 4

1250

Question 5

If a company has 1000 shares at the 1 January and the 31st of December 20X0
and issues 500 bonus shares at the 30th of June 20x1 and consequently has 1500
share at 31st of December 20x1 - what is the weighted average number of shares for
20x0 and 20x1?

Answer 5

Finns inget svar till exakt den här frågeställningen men är ganska säker på att svaret är 1500, exakt som BS kort #7

Question 6

If a company has share options with a market value of 1.000.000 SEK and the
share price of the company is 50 SEK, how will the share options affected the
calculation of diluted EPS?

Answer 6

Finns inget svar till exakt den här frågeställningen.

Question 7

If a company has 1000 shares at the 1 January and the 31st of December 20X0
and issues 500 bonus shares at the 30th of June 20x1 and consequently has
1500 share at 31st of December 20x1 - what is the weighted average number
of shares in the EPS calculation for 20x0 and 20x1?

Answer 7

1500 for both years

Eftersom:
bonus issues are usually treated as if they had occurred at the BEGINNING of the PREVIOUS period.

It is necessary in these circumstances to recalculate and restate EPS for
the previous period as well as to calculate EPS for the current period

Question 8

A company has 100.000 outstanding shares at the end of year 20x1 and
50.000 potential shares at the end of year 20x3 via 50.000 share options at a
share price of 30 SEK. The average share price on the market in 20x1 for the
company is 50 SEK. What is the number of shares used in the diluted EPS for
20x1?

Answer 8

120 000

Tror man beräknar det såhär:
50 000 share options * 30kr/share = 1 500 000

Sen kollar man hur många shares av dem som man får till fair value, d.v.s. 1 500 000 / 50 = 30 000

Sen subtraherar man den siffran från den ursprungliga mängden potential shares, d.v.s. 50 000 - 30 000 = 20 000

Svaret blir 100 000 + 20 000 = 120 000