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how to calculate EPS when the following info is given ;Operating income, interest expense, operating...

how to calculate EPS when the following info is given ;

Operating income, interest expense, operating expense, preferred dividend paid, common dividend paid, tax rate, number of common shares outstanding, opening retained earning balance and share price?

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Expert Solution

The EPS also known as Earnings per share can be computed as follows:

= (Net Income - preferred dividend paid) / Number of common shares outstanding

= ((Operating income or EBIT - Interest expense) x (1 - tax rate) - preferred dividend paid) / Number of common shares outstanding

jeff jeffy answered 2 years ago
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