Earnings per share (EPS) : The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible preferred stock , and stock options, reduce the EPS by increasing the common shares. Use the following formula to determine EPS: Earnings per share } = Earnings available to common shareholders Weighted average number of common shares outstanding = Net income –Preferred dividends Weighted average number of common shares outstanding Net loss per share : The computation of EPS requires net income. But if a company reports net loss instead of net income, the loss which is generated by each common share, is referred to as net loss per share. To determine : The earnings per share of Incorporation A for the year ended December 31, 2014, 2015, and 2016

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Chapter 19, Problem 19.9P

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Earnings per share (EPS): The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible preferred stock, and stock options, reduce the EPS by increasing the common shares.

Use the following formula to determine EPS:

Earnings per share} = Earnings available to common shareholdersWeighted average number of common shares outstanding= Net income –Preferred dividendsWeighted average number of common shares outstanding

Net loss per share: The computation of EPS requires net income. But if a company reports net loss instead of net income, the loss which is generated by each common share, is referred to as net loss per share.

To determine: The earnings per share of Incorporation A for the year ended December 31, 2014, 2015, and 2016

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