Financial Accounting
Financial Accounting
17th Edition
ISBN: 9781259692390
Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
Publisher: McGraw-Hill Education
Question
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Chapter 12, Problem 3CTC

a.

To determine

Indicate the purpose of showing basic and diluted earnings per share (EPS) to the investors.

b.

To determine

Compute the market price of the share of NY Studios, if the price-earnings per share is 10 times, and basic EPS is $6.90.

c-1.

To determine

Compute the estimated basic EPS of NY Studios, if the revenue and expenses increase by 10%, and basic EPS is $6.90, and the convertible preferred shares are not converted into common shares.

2.

To determine

Compute the estimated basic EPS of NY Studios, if the revenue and expenses increase by 10%, and basic EPS is $5.20, and the convertible preferred shares are converted into common shares.

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