Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS. The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares , bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS. (a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

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Answer 1

Question

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

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Answer 2

Question

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

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Answer 3

Question

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

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Answer 4

Question

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

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Answer 5

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

Answer 6

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

Answer 7

Chapter 16, Problem 27E

To determine

Earnings per share: Earnings per share (EPS) indicates the income earned per share of common stock. EPS is calculated as Basic EPS and Diluted EPS.

The income for EPS is calculated by subtracting the preference dividends. The income is divided by weighted-average common shares outstanding. This is Basic EPS. Basic EPS does not consider the dilutive effects of convertible long-term debts. Diluted EPS is based on the assumption that all convertible securities like preference shares, bonds will be exercised. Diluted EPS takes the calculation a step further and is more detailed than the Basic EPS.

(a) To determine: To determine whether the contingent shares have to be considered in 2016 earnings per share computations.

Answer 8

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

Answer 9

To determine

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 16 - Prob. 1Q Ch. 16 - 2. Briefly explain why corporations issue...Ch. 16 - 3. Discuss the similarities and the differences...Ch. 16 - 4. Bridgewater Corp. offered holders of its 1,000...Ch. 16 - 5. Explain how the conversion feature of...Ch. 16 - Prob. 6Q Ch. 16 - Prob. 7Q Ch. 16 - Prob. 8Q Ch. 16 - Prob. 9Q Ch. 16 - Prob. 10Q

(b) To explain: To explain whether the contingent shares have to be considered in earnings per share computations for 2016.

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