EPS & DEPS Flashcards
1
Q
BEPS Calc
A
NI-PSD/common shares. 10000 shares of 10%, $100 par value cumulative preferred stock means.. PSD IS 10000×100×10%= 100000
2
Q
DEPS
A
IN calculating DEPS Antidilutive com stock is not used for calculation of DEPS. If convertible bonds are determined to be dilutive then the interest expense (net of tax effects) will be added to the net income.
If convertible bonds had an interest expense of $100,000 and the tax rate was 25 percent, then 75K would be added back to net income as part of the calculation.
