Cifa
EARNINGS PER SHARE
Q1
Companies A and B both have earnings of $10,000, but company A has a share capital of 100,000 shares, while company B has a share capital of 50,000 shares. If no other information is available which company’s share do you want to buy? o Company A o Company B o Both Company A and B o Neither
All companies which comply with international standards must present EPS figures in the statement of comprehensive income. True or False?
Q2
True False
A company's issued share capital throughout an accounting period consists of 500,000 ordinary shares of 20p and 80,000 preference shares of £1. Profit after tax for the period is £320,000 and the preference dividend is £8,000. Basic EPS for the period is:
Q3
64p 62.4p 55.2p £3.12
On 1 January 2011, a company's issued share capital consisted of 120,000 ordinary shares of £1. On 1 May 2011, the company issued another 30,000 ordinary shares and on 1 July 2011 the company issued a further 50,000 shares. Both issues were made at full market price. The weighted average number of shares outstanding during the year to 31 December 2011 was:
Q4
165,000 160,000 156,667 175,000
A company's profit after tax for the year to 30 June 2012 was £1m. The company's issued share capital at 1 July 2011 consisted of 2,400,000 ordinary shares of 50p each. A further 300,000 shares were issued at full market price on 1 September 2011. Basic EPS for the year is:
Q5
75.5p 39.2p 78.4p 37.7p
Q6
Earnings per share must appear on the face of the income statement if the corporation's shares are publicly traded. o True o False
Q7
Firm J has £62,527 of net income, £625 preferred dividends and 500,000 outstanding ordinary shares for the previous 12 months. Calculate the EPS o 12.51p o 12.38p o 12.15p o 12.83p
When
Q1
Companies A and B both have earnings of $10,000, but company A has a share capital of 100,000 shares, while company B has a share capital of 50,000 shares. If no other information is available which company’s share do you want to buy? o Company A o Company B o Both Company A and B o Neither
All companies which comply with international standards must present EPS figures in the statement of comprehensive income. True or False?
Q2
True False
A company's issued share capital throughout an accounting period consists of 500,000 ordinary shares of 20p and 80,000 preference shares of £1. Profit after tax for the period is £320,000 and the preference dividend is £8,000. Basic EPS for the period is:
Q3
64p 62.4p 55.2p £3.12
On 1 January 2011, a company's issued share capital consisted of 120,000 ordinary shares of £1. On 1 May 2011, the company issued another 30,000 ordinary shares and on 1 July 2011 the company issued a further 50,000 shares. Both issues were made at full market price. The weighted average number of shares outstanding during the year to 31 December 2011 was:
Q4
165,000 160,000 156,667 175,000
A company's profit after tax for the year to 30 June 2012 was £1m. The company's issued share capital at 1 July 2011 consisted of 2,400,000 ordinary shares of 50p each. A further 300,000 shares were issued at full market price on 1 September 2011. Basic EPS for the year is:
Q5
75.5p 39.2p 78.4p 37.7p
Q6
Earnings per share must appear on the face of the income statement if the corporation's shares are publicly traded. o True o False
Q7
Firm J has £62,527 of net income, £625 preferred dividends and 500,000 outstanding ordinary shares for the previous 12 months. Calculate the EPS o 12.51p o 12.38p o 12.15p o 12.83p
When