Question

Atlas Corporation reported the following earnings per share information in its current annual report. The company has only one class of stock outstanding. ($ in millions) Net income $7,121 Dividends to common shareholders $2,033 Weighted average common shares outstanding 4,221 Weighted average dilutive shares 4,305 Basic and diluted earnings per share were, respectively: Select one: a. $1.69 and $1.18 b. None of these are correct. c. $2.17 and $2.13 d. $1.69 and $1.65 e. $1.21 and $1.18

Answer 1

d. $1.69 and $1.65

Step-by-step explanation:

Basic EPS = Net income ÷ Common share outstanding

Where, Net income = $7,121

Common shares outstanding = 4,221

So, Basic EPS = $7,121 ÷ 4,221

= $1.69

Diluted EPS = Net income ÷ Weighted dilutive share

Where, Weighted dilutive share = 4,305

So, Diluted EPS = $7,121 ÷ 4,305

= $1.65

Hence, $1.69 and $1.65 is the correct answer.