Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 12, Problem 12.3ADM
(a)
To determine
Earnings per share:
Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.
The following formula can be used to calculate earnings per share:
The earnings per share of Incorporation C for Year 1-3.
(b)
To determine
To interpret: The trend in earnings per share using horizontal analysis for 3 years in terms of change in earnings and average shares outstanding.
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Chapter 12 Solutions
Corporate Financial Accounting
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