What is a simple capital structure? How is EPS determined for a company with a simple capital structure?
Answer to relevant QuestionsWhen calculating the weighted average number of common shares, how are stock dividends and stock splits treated? Compare this treatment with that of additional shares sold for cash in midyear.The potentially dilutive effect of convertible securities is reflected in EPS calculations by the if-converted method. Describe this method as it relates to convertible bonds.In addition to EPS numbers themselves, what additional disclosures should be provided concerning the EPS information?On October 1, 2011, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the ...Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2011, the company granted 16 million of its $1 par common shares, subject to forfeiture if employment is terminated ...
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