FOUND.OF FINANCIAL MANAGEMENT-ACCESS
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
Question
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Chapter 19, Problem 20P

a.

Summary Introduction

To calculate: The basic EPS of Online Network Inc.

Introduction:

Basic Earnings Per Share (Basic EPS):

It is that part of the profits of a company which is to be distributed to each outstanding share of a company’s common stock in a particular period.

b.

Summary Introduction

To calculate: The diluted EPS of Online Network Inc.

Introduction:

Diluted Earnings Per Share (Diluted EPS):

It is computed after taking into account all the convertible securities, such as stock options, convertible debentures or preferred shares, share warrants, which can be converted into shares in the future and the dilutive effect they would have on the EPS.

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