No.PZ2021050901000016
For the year ended 31 December 2018, Angler Products had net income of $2,500,000. The company declared and paid $200,000 of dividends on preferred stock. The company also had the following common stock share information:

On 1 December 2018, a previously declared 2-for-1 stock split took effect. Each shareholder of record receives two shares in exchange for each current share that he or she owns. What is the company’s basic EPS?
解析
Solution: A
The weighted average number of shares outstanding is determined by the length of time each quantity of shares was outstanding:
A stock split is treated as if it occurred at the beginning of the period. The weighted average number of shares would, therefore, be 2,250,000, and the basic EPS would be $1.02 [= ($2,500,000 – $200,000)/2,250,000].
考点:FSA- Understanding The I/S- Earnings per share (EPS)