Alex Dunphy is an intern of financial analysts at the Bank of MF. She is calculating...
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Alex Dunphy is an intern of financial analysts at the Bank of MF. She is calculating the Earnings Per Share of Imaginary Company in 2020. She notices the company never issued any dilutive financial instruments and yet issued 1,000 new common shares in 2020. Therefore, Dunphy suggests the company's basic EPS will be smaller than its diluted EPS in 2020. Q: Is Dunphy's suggestion on Imaginary Company's EPS justifiable? Why? Alex Dunphy is an intern of financial analysts at the Bank of MF. She is calculating the Earnings Per Share of Imaginary Company in 2020. She notices the company never issued any dilutive financial instruments and yet issued 1,000 new common shares in 2020. Therefore, Dunphy suggests the company's basic EPS will be smaller than its diluted EPS in 2020. Q: Is Dunphy's suggestion on Imaginary Company's EPS justifiable? Why?
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The detailed answer for the above question is provided below No Dunphys suggestion is not justifiabl... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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