What is meant by dilution of eps

Assignment Help Accounting Basics

Reference no: EM131881446

Question: 1. Computation of Earnings Per Share:

ON January 1, the commpany had 100,000 common shares outstanding. On April 1, the company issued 30,000 additional shares. On August, 1, the company performed a two-for-one stock split. The company also had 10,000 shares of 8%, $50 par preferred stock outstanding throughout the year. The company declared the required preferred dividend during the year. Net income for the year was $300,000. Compute basic earning per share.

2. What is meant by dilution of EPS?

3. Briefly describe the four types of risk.

Reference no: EM131881446

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