What is "Basic EPS" and how is it calculated? Is this number a good indicator for future company profitability? How does it differ from "Diluted EPS"? (Chapter 4, Section 6.2)
What is "Basic EPS" and how is it calculated? Is this number a good indicator for future company profitability? How does it differ from "Diluted EPS"? (Chapter 4, Section 6.2)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Essay Questions
1. What is "Basic EPS" and how is it calculated? Is this number a good indicator
for future company profitability? How does it differ from "Diluted EPS"?
(Chapter 4, Section 6.2)
2. Discuss what is Net Reporting and give an example of a company that may
use it. Justify your example. (Chapter 3, Section 3.2.4)
3. Why is it important for analysts that Discontinued Operations be listed
separately in a company's financial statements? What problems would be
created if they were not presented separately and for which users of financial
statements? (Chapter 3, Section 5.2)
What is vertical common-size analysis in financial statements? Explain why we
need to use in the balance sheet and the income statement. Build a
common-size statement. (Chapter 3 and 4. Section 7.1)
S. Polyzos - FINA21 Midterm Revision
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