--- ### Required Information **Sovran Financial Corporation** reported net income of **$154 million** for the current year (tax rate 25%). Its capital structure consisted of the following: - **Common Stock** - As of Jan. 1 - 60 million common shares were outstanding - (Unchanged during the year) - **Basic EPS Calculation:** \[ \text{Net Income} = \$154 \text{ million} \text{Shares Outstanding} = 60 \text{ million} \text{Basic EPS} = \$2.57 \text{ (amounts in millions, except per share amount)} \] ### Video Transcript **[0:00 - 1:23]** No transcript available. Video content may include explanations related to the calculation of basic EPS or further insights into the financial performance metrics of Sovran Financial Corporation. --- ### Knowledge Check 01 **Scenario:** Greene Corporation reported a net income of **$300,000**. The company had **60,000 common shares outstanding**, which remained unchanged during the current year. **Question:** What is the company's basic EPS? *(Round your answer to 2 decimal places.)* - **Basic EPS Calculation:** - \[ \text{Basic EPS} = \frac{\text{Net Income}}{\text{Shares Outstanding}} \text{Basic EPS} = \frac{\$300,000}{60,000} = \$5.00 \] Please enter your answer in the space provided. ---
--- ### Required Information **Sovran Financial Corporation** reported net income of **$154 million** for the current year (tax rate 25%). Its capital structure consisted of the following: - **Common Stock** - As of Jan. 1 - 60 million common shares were outstanding - (Unchanged during the year) - **Basic EPS Calculation:** \[ \text{Net Income} = \$154 \text{ million} \text{Shares Outstanding} = 60 \text{ million} \text{Basic EPS} = \$2.57 \text{ (amounts in millions, except per share amount)} \] ### Video Transcript **[0:00 - 1:23]** No transcript available. Video content may include explanations related to the calculation of basic EPS or further insights into the financial performance metrics of Sovran Financial Corporation. --- ### Knowledge Check 01 **Scenario:** Greene Corporation reported a net income of **$300,000**. The company had **60,000 common shares outstanding**, which remained unchanged during the current year. **Question:** What is the company's basic EPS? *(Round your answer to 2 decimal places.)* - **Basic EPS Calculation:** - \[ \text{Basic EPS} = \frac{\text{Net Income}}{\text{Shares Outstanding}} \text{Basic EPS} = \frac{\$300,000}{60,000} = \$5.00 \] Please enter your answer in the space provided. ---
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![---
### Required Information
**Sovran Financial Corporation** reported net income of **$154 million** for the current year (tax rate 25%). Its capital structure consisted of the following:
- **Common Stock**
- As of Jan. 1
- 60 million common shares were outstanding
- (Unchanged during the year)
- **Basic EPS Calculation:**
\[
\text{Net Income} = \$154 \text{ million}
\text{Shares Outstanding} = 60 \text{ million}
\text{Basic EPS} = \$2.57 \text{ (amounts in millions, except per share amount)}
\]
### Video Transcript
**[0:00 - 1:23]**
No transcript available. Video content may include explanations related to the calculation of basic EPS or further insights into the financial performance metrics of Sovran Financial Corporation.
---
### Knowledge Check 01
**Scenario:**
Greene Corporation reported a net income of **$300,000**. The company had **60,000 common shares outstanding**, which remained unchanged during the current year.
**Question:**
What is the company's basic EPS? *(Round your answer to 2 decimal places.)*
- **Basic EPS Calculation:**
- \[
\text{Basic EPS} = \frac{\text{Net Income}}{\text{Shares Outstanding}}
\text{Basic EPS} = \frac{\$300,000}{60,000} = \$5.00
\]
Please enter your answer in the space provided.
---](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6ce3753-b96c-43e9-b162-619ea9ec998a%2Fc636fb35-c404-4458-a397-e3c5656222fa%2Fogmnrr9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:---
### Required Information
**Sovran Financial Corporation** reported net income of **$154 million** for the current year (tax rate 25%). Its capital structure consisted of the following:
- **Common Stock**
- As of Jan. 1
- 60 million common shares were outstanding
- (Unchanged during the year)
- **Basic EPS Calculation:**
\[
\text{Net Income} = \$154 \text{ million}
\text{Shares Outstanding} = 60 \text{ million}
\text{Basic EPS} = \$2.57 \text{ (amounts in millions, except per share amount)}
\]
### Video Transcript
**[0:00 - 1:23]**
No transcript available. Video content may include explanations related to the calculation of basic EPS or further insights into the financial performance metrics of Sovran Financial Corporation.
---
### Knowledge Check 01
**Scenario:**
Greene Corporation reported a net income of **$300,000**. The company had **60,000 common shares outstanding**, which remained unchanged during the current year.
**Question:**
What is the company's basic EPS? *(Round your answer to 2 decimal places.)*
- **Basic EPS Calculation:**
- \[
\text{Basic EPS} = \frac{\text{Net Income}}{\text{Shares Outstanding}}
\text{Basic EPS} = \frac{\$300,000}{60,000} = \$5.00
\]
Please enter your answer in the space provided.
---
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