CFA Practice Question

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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
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