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1 February, 16:46

Oracle Corporation reported the following earnings per share information in its 2016 Form 10-K. The company has only one class of stock outstanding. ($ in millions)

Net income

$8,901

Dividends to common shareholders

$2,541

Weighted average common shares outstanding

4,221

Weighted average dilutive shares

4,305

Basic and diluted earnings per share were, respectively:

Select one:

A. $0.30 and $0.30

B. $0.77 and $0.74

C. $1.08 and $1.06

D. $2.11 and $2.07

E. None of the above

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Answers (1)
  1. 1 February, 18:25
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    d. 2.11 and 2.07

    Explanation:

    Basic EPS = Net Income - Preference Dividend / Weighted Average common shares outsanding

    = 8.901 / 4.221

    = 2.10874

    =2.11 aproximately

    Diluted EPS = Net Income Attributable to common shares holders / Weighted Average dilutive shares

    = 8.901 / 4.305

    = 2,0675

    = 2,7 approximately
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