Months
1. Temper Inc. Outstanding
Jan-01 30,000 33,000 12 33,000
Feb-01 10% SD
Mar-01 9,000 9,000 10 7,500
Jul-01 8,000 8,000 6 4,000
Dec-31 Weighted Average Shares Outstanding 44,500
Months
2. Doreen Comoany Outstanding
Jan-01 100,000 720,000 12 720,000
Apr-01 30,000 216,000 9 162,000
May-01 2 for 1
Jun-30 - 10,000 - 36,000 6 - 18,000
Jul-30 20% BI
Dec-31 3 for 1
Dec-31 Weighted Average Shares Outstanding 864,000
3. Monitor Company
Net Income ₱ 1,500,000.00
Preference Dividend
(deemed non redeemable) ₱ 240,000.00
Net Income - Ordinary ₱ 1,260,000.00
Outstanding Shares 120,000
Basic Earnings per Share ₱ 10.50
4. Imitation Company
Total Ordinary Shares Outstanding
Net Income to Ordinary Shares
Total Ordinary Shares Outstanding
4. Imitation Company
Ordinary Shares - Jan 1, 2021 200,000
Share Dividend 10 % - Oct 1, 2021 20,000
Total Ordinary Shares Outstanding 220,000
Net Income ₱ 1,920,000.00
Preference Dvidend ₱ 200,000.00
Net Income to Ordinary Shares ₱ 1,720,000.00
Total Ordinary Shares Outstanding 220,000
Basic Earnings per Share ₱ 7.82
5. Professor Company
Jan-01 Ordinary Shares
Sep-01 Ordinary Shares
Dec-31 Convertible Bonds
Average Shares
Net Income
Interest on Bonds,
net of tax from
2020-2021
Adjusted Income
Diluted Earnings per Share
Months
Outstanding
450,000 12 450,000
150,000 4 50,000
300,000 12 300,000
800,000
₱ 3,750,000.00
₱ 500,795.52
₱ 4,250,795.52
₱ 5.31
6. Giselle Company
2019 Outstanding Shares
Ordinary Shares 500,000
Average Ordinary Shares
Net Income
Preference Dividend
Net Income to Ordinary
Shares
Basic Earnings per Share
7. Giselle Company
2019 Outstanding Shares
Ordinary Shares 500,000
Convertible Shares 200,000
Convertible Bonds 100,000
Average Ordinary Shares
NetBonds,
Interest on Incomenet of tax
for 1019
Net Income to Ordinary
Shares
Diluted Earnings per Share
Basic Earnings per Share
The effect of the convertible
preference hsares is an increase in EPS
from P5.89 to P6.51, therefore it is
antidilutive.
Thus, the diluted EPS should be
the same as the basic EPS of P5.89.
Months
Outstanding
12 500,000
500,000
₱ 5,000,000.00
₱ 500,000.00
₱ 4,500,000.00
₱ 9.00
Months
Outstanding
12 500,000
12 200,000
12 100,000
800,000
₱ 5,000,000.00
₱ 210,000.00
₱ 5,210,000.00
₱ 6.51
₱ 5.89
of the convertible
res is an increase in EPS
6.51, therefore it is
diluted EPS should be
e basic EPS of P5.89. 8. Jean Company
Net Income - Preferred Dividends
Outstanding Share
Basic Earnings per Share
Profit (Loss) plus After tax interest
Diluted EPS expense on convertible bonds
Weighted average number of
outstanding ordinary shares plus
Incremental shares arising from the
assumed conversion or exercise of
dilutive potential ordinary shares
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑃𝑆=(𝑃 2,000,000+0)/([50,000+(5,000 −((5,000 𝑥
𝑃200)/𝑃250))])
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑃𝑆=(𝑃 2,000,000)/([50,000+(5,000 −
(𝑃1,000,000/𝑃250))])
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑃𝑆=(𝑃 2,000,000)/(50,000+(5,000 −4,000) )
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑃𝑆=(𝑃 2,000,000)/((50,000 +1,000))
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑃𝑆=(𝑃 2,000,000)/51,000
Diluted Earnings per Share
₱ 2,000,000.00
50,000
₱ 40.00
+(5,000 −((5,000 𝑥
5,000 −
,000 −4,000) )
1,000))
₱ 39.22
