Chapter 19, Problem 19.24E

EPS; concepts; terminology

• LO19–5 through LO19–13

Listed below are several terms and phrases associated with earnings per share. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.

List A	List B
_____ 1. Subtract preferred dividends	a. Options exercised
_____ 2. Time-weighted by	b. Simple capital structure
_____ 3. Time-weighted shares assumed issued plus time-weighted actual shares	c. Basic EPS
_____ 4. Midyear event treated as if it occurred at the beginning of the reporting period	d. Convertible preferred stock
_____ 5. Preferred dividends do not reduce earnings	e. Earnings available to common shareholders
_____ 6. Single EPS presentation	f. Antidilutive
_____ 7. Stock split	g. Increased marketability
_____ 8. Potential common shares	h. Discontinued operations
_____ 9. Exercise price exceeds market price	i. Stock dividend
_____ 10. No dilution assumed	j. Add after-tax interest to numerator
_____ 11. Convertible bonds	k. Diluted EPS
_____ 12. Contingently issuable shares	l. Noncumulative, undeclared preferred dividends
_____ 13. Maximum potential dilution	m. Common shares retired at the beginning of August
_____ 14. Shown between per share amounts for net income and for income from	n. Include in diluted EPS when conditions for issuance are met