Page 25 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
24. Understanding Income Statements
Example: Weighted average shares and basic EPS, p.57
JC has net income of $10,000 and paid $1,000 cash dividends to its preferred shareholders and $1,750
cash dividends to its common shareholders. At the beginning of the year, there were 10,000 shares of
common stock outstanding. 2,000 new shares were issued on July 1. Assuming a simple capital structure,
what is Johnson’s basic EPS?
tanties
