F1-M2 EPS

Question 1

Basic EPS formula

Answer 1

N.I. - Cumul Preferred stock div (ParSharesRate)/ Weighted (Months/Year) Average common shares O/S

Question 2

In Diluted EPS formula how is anti-diluted factors considered?

Answer 2

They are ignored and not netted. Only consider factors that will dilute EPS.

Question 3

Define Large accelerators/ accelerators and non accelerators and how long they have to file 10-k

Answer 3

Large A 700 Mill in FMV, Accelerators, 60 days. Accelerators 75 mill and up, 75 days to file. Non accelerators are less than 75 Mill FMV and have 90 days.

Question 4

What is Form 10K/10Q/8-k

Answer 4

Annual filling, quarterly filing, statement of changes (4 business days to report)

Question 5

How long do large A and accelerators filers have to file 10Q

Answer 5

40 days

Question 6

What happens when a bond is converted into stock?

Answer 6

The company will save on interest expense net of tax, the company will issue more shares. The net of this result is a diluted EPS

Question 7

How is does interest expense effect NI on diluted EPS

Answer 7

It is an addback to net income than only the tax rate is subtracted

Question 8

What happens when a stock is split after year end but before issue of FS

Answer 8

We still account for it retrospectively

Question 9

What type of options will dilute EPS?

Answer 9

Options that are greater than the strike price

Question 10

What happens when you convert dividends into shares?

Answer 10

The DIV payment has to be added back into NI .