Question

.Compute and evalate Cofe Cans eamings per sheare or 2019-2017

Answer 1

Earnings per share (EPS) is calculated by subtracting dividends on preferred stock from net income and dividing the result by the average outstanding shares. The EPS figures for consecutive years can then be evaluated to analyze the company's financial performance over time.

Step-by-step explanation:

To compute and evaluate a company's earnings per share (EPS) for a specific period such as 2019-2017, you need to follow the standard EPS calculation formula which is:

Earnings Per Share (EPS) Formula

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

Here are the steps to calculate EPS:

1. Obtain the net income figures for the years 2019, 2018, and 2017 from the income statements of 'Cofe Cans'.
2. Deduct any dividends paid to preferred shareholders from the net income for each of those years.
4. Determine the average number of common shares outstanding during each of those years.
5. Divide the adjusted net income by the average outstanding shares to get the EPS for each year.

Once you have the EPS figures, you can evaluate them to analyze the company's performance over the years, considering anysignificant financial events that might have affected earnings.