Earnings Per Share Computation: Basic and Diluted EPS

Understanding Earnings Per Share (EPS) is essential for financial reporting, corporate analysis, and accounting examinations. This text-based course breaks down the mechanics of capital structures so you can confidently calculate both basic and diluted EPS from standard financial statements. You will build a thorough understanding of corporate equity transactions, weighted-average share counts, and the impact of potentially dilutive instruments such as stock options, warrants, convertible bonds, and convertible preferred stock. What you'll learn: - Understand fundamental EPS terminology, standard reporting requirements, and capital structure classifications - Calculate basic EPS by adjusting net income for preferred dividends and computing weighted-average shares outstanding - Apply the treasury stock method to determine the dilutive effects of options, rights, and warrants - Evaluate convertible debt and preferred shares using the if-converted method - Identify and test for anti-dilution to ensure proper presentation of diluted EPS - Practice complex scenario-based EPS calculations through guided written walkthroughs The course begins with foundational concepts and definitions before progressing logically into multi-step computations and advanced simulation-style problem sets. Designed for accounting students, exam candidates, and finance professionals seeking a clear refresher, no advanced prerequisites are required beyond basic accounting knowledge. Start reading today to refine your financial reporting and computation skills.