ANSWER KEY E 19-24 EPS; concepts; terminology
Listed below are several terms and phrases associated with earnings per share. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. List
A List B
___ 1. Subtract preferred dividends. a. Options exercised.
___ 2. Time-weighted by 5/12. b. Simple capital structure.
___ 3. Time-weighted shares assumed issued ` c. Basic EPS.
plus time-weighted-actual shares. d. Convertible preferred stock.
___ 4. Midyear event treated as if e. Earnings available to common
it occurred at the beginning of the shareholders.
reporting period.
f. Antidilutive.
___ 5. Preferred dividends do not reduce g. Increased marketability.
earnings.
h. Extraordinary items.
___ 6. Single EPS presentation. i. Stock dividend.
___ 7. Stock split. j. Add after-tax interest to numerator.
___ 8. Potential common shares. k. Diluted EPS.
___ 9. Exercise price exceeds market price. l. Noncumulative, undeclared
___ 10. No dilution assumed. preferred dividends.
___ 11. Convertible bonds. m. Common shares retired in August.
__ 12. Contingently issuable shares. n. Include in diluted EPS when
__ 13. Maximum potential dilution. conditions for issuance are met.
__ 14. Shown between per share amounts
for net income and for income from
continuing operations.
ANSWER KEY Exercise 19-24 Listed below are several terms and phrases associated with earnings per share. Pair each
