AuthorTopic: similar questions from june 04
kraze
@2004-11-30 18:26:12
hey guys, times running out. Just wanted to ask a question. I took the test in June and noticed that there were questions regarding EPS and stock splits. Can anyone show me an example of how it affects it. I know its retro, but is it just dividing the # of shares by 2.

Also anyone know the difference between discontined operations between above the line and below the line. It seems like most discontined ops are going into Unusual and Infrequent isnt it supposed to go below NI

Thanks.

kraze
lemec
@2004-12-01 09:04:25
1)1000 common shares floating on Jan 1, 2004, 2 for 1 stock split on April 1 and 200 common shares issued on July 1. What are the wt. avg. common shares?

1000(2)X12=24000
200X6=1200
25200/12=2100

2)It a question of a segment of a business (above the line) or a physically and operationally independent operation of a firm (below the line). The key is physically and operationally independent. I believe AIMR may use exact words like business segment or discontinued operation. However, you may also see examples such as:

gain or loss from a sale of an auto plant by a auto maker (above the line) or disposal of a generic business by a pharmaceutical business.(below the line because generic business is considered a separate business by most firms) These are more subtle and difficult but you never know.

I hope this helps
kraze
@2004-12-01 20:03:05
Yes this helps alot. Many thanks and good luck to all

CFA Discussion Topic: similar questions from june 04

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Martin Rockenfeldt

Martin Rockenfeldt