EPS

Question 1

When there is 1)NOL and 2) non-cumulative ps dividend declared but not paid, and 3) cumulative ps dividend that is neither declared not paid for CY or PY, how much is the income available for CS holders?

Answer 1

The income available for CS for eps calculating is NOL - 1)cumulative ps dividend whether or not declared or paid,
- non-cumulative ps dividend that were declared

It will reduce the NOL further

Question 2

When calculating shares for stock options, how to calculate the shares when options shares are 40, options price is $3 and market price is $8, how many incremental shares being issued?

Answer 2

Calculation is 40*3/8 = 15 shares assumed issued

The incremental shares are 40-15= 25 this is the shares add into the outstanding shares

Question 3

Do you add or subtract cumulative dividends when calculating the IACS when not giving the date when convert from ps to CS?

Answer 3

Subtract and then add because converted result in reverse the ps dividend paid