Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
What is Formula for Basic Earnings per Share? |
NIBT less PREF Dividends Divided by WAOS |
|
What is the Formula for Diluted Earnings per Share? |
NI + Bonds INTEREST after tax - PD of Non conv. PS Over WAOS |
|
What are the Exceptions in computing the WAOS? |
STOCK SPLIT SHARE DIVIDEND |
|
What to remember in Convertions? |
Average potential outstanding shares is based on issuance date of the convertible Preferrence shares or convertible bonds and NOT the conversion date. |
|
Exercising Share Options.: How to get the proceeds? |
Exercise price plus Fair Value of Share Options at GRANT DATE is equals to the Adjusted Exercise price multiply by number of Share options |
|
Under the stock Options, if the exercise price is GREATER than Average price, therefore it is Anti dilute. What will be the treatment? |
Ignore the stock option conversion in computation |
|
In Diluted Earnings per Share, what will be added in WAOS? |
1. Potential Ordinary shares 2. Contingent Ordinary Shares - for example Net income target was achieved so the company will issue shares |