Epic Company earned net Income of $896,000 this year. There were preferred shareholders recelved a $38,000 cash dividend. Compute Epic Company's basic earnings per share. Basic Earnings Per Share Choose Denominator: Choose Numerator:
Epic Company earned net Income of $896,000 this year. There were preferred shareholders recelved a $38,000 cash dividend. Compute Epic Company's basic earnings per share. Basic Earnings Per Share Choose Denominator: Choose Numerator:
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![Epic Company earned a net income of $896,000 this year. There were 330,000 weighted-average common shares outstanding, and preferred shareholders received a $38,000 cash dividend.
Compute Epic Company’s basic earnings per share (EPS).
**Basic Earnings Per Share**
A table is provided to calculate the Basic EPS as follows:
- **Choose Numerator:** This is the figure to be used in the numerator of the EPS calculation, typically the net income after subtracting any preferred dividends.
- **Choose Denominator:** This is the figure to be used in the denominator, generally the weighted-average number of common shares outstanding.
- **Basic EPS Calculation:** The formula used is:
\[
\text{Basic EPS} = \frac{\text{Net Income - Preferred Dividends}}{\text{Weighted-Average Common Shares Outstanding}}
\]
The table includes spaces to enter the figures for the calculation and obtain the Basic EPS. The final row will display the Basic EPS value per share after the calculations.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4726056b-a0d8-4167-a534-8f03670a441a%2F3f614146-4f11-4f01-a648-257728fded44%2Foqazvum_processed.png&w=3840&q=75)
Transcribed Image Text:Epic Company earned a net income of $896,000 this year. There were 330,000 weighted-average common shares outstanding, and preferred shareholders received a $38,000 cash dividend.
Compute Epic Company’s basic earnings per share (EPS).
**Basic Earnings Per Share**
A table is provided to calculate the Basic EPS as follows:
- **Choose Numerator:** This is the figure to be used in the numerator of the EPS calculation, typically the net income after subtracting any preferred dividends.
- **Choose Denominator:** This is the figure to be used in the denominator, generally the weighted-average number of common shares outstanding.
- **Basic EPS Calculation:** The formula used is:
\[
\text{Basic EPS} = \frac{\text{Net Income - Preferred Dividends}}{\text{Weighted-Average Common Shares Outstanding}}
\]
The table includes spaces to enter the figures for the calculation and obtain the Basic EPS. The final row will display the Basic EPS value per share after the calculations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman