- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 5. Earnings per Share
CFA Practice Question
The table below presents a partial reconciliation statement of EPS for Midsummer Travels.
What is the income before extraordinary items & accounting changes? What is the basic EPS?
Correct Answer: 109,105,050 and 4.76
Income before extraordinary items & accounting changes = 107,115,000 + 1,990,050 = 109,105,050
Basic EPS = 107,115,000 / 22,500,000 = 4.76
User Contributed Comments 6
| User | Comment |
|---|---|
| DonAnd | Great question |
| rocyang | like it |
| Trofimenko | really great one |
| thegeneral101 | tricky...but good |
| johntan1979 | The headache is if they ask for diluted EPS... will need more than double the time to solve this one question. |
| farhan92 | think it might be one for the exam (if you feel like you are low on time) work out the basic and then eliminate options based on basic>dilutive. If you have time at the end can always come back to it |