Question

Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1,172 How many weighted average shares were dilutive in 2017

Answer 1

15.2million dilutive shares

Step-by-step explanation:

Calculation to determine How many weighted average shares were dilutive in 2017.

First step is to calculate the Basic EPS using this formula

Basic EPS= Net income -Basic

Let plug in the formula

Basic EPS= $1,827 /$1.56

Basic EPS=$1,171.2 million

Second step is to calculate the Diluted EPS

Diluted EPS =$1,827 million / $1.54

Diluted EPS = $1,186.4 million.

Now let calculate How many weighted average shares were dilutive in 2017

2017 Diluted weighted average=$1,186.4 million - $1,171.2 million.

2017 Diluted weighted average= 15.2million dilutive shares

Therefore How many weighted average shares were dilutive in 2017 is 15.2 million dilutive shares