CANADIAN TIRE- Part 8 of 11

Use two decimal points.
Do not add percentage (%), or times (X) with the number.

Calculate EPS in 2020 [A]

Question

CANADIAN TIRE- Part 8 of 11

Use two decimal points.
Do not add percentage (%), or times (X) with the number.

Calculate EPS in 2020 [A]

BlackTom AI · Accepted Answer

Question restatement: The task is to calculate EPS (earnings per share) for 2020, labeled as [A], using two decimal places and without adding percent signs or multiplicative symbols. There are no answer options provided to evaluate against.

Step-by-step approach to calculating EPS in general: EPS is defined as the amount of net income attributable to each share of common stock. The standard formula is:
- EPS = (Net income attributable to common shareholders - preferred dividends) / Weighted-average number of common shares outstanding over the period.

Key data typically needed: net income (attributable to common shareholders), any preferred dividends to subtract if there are preferred shares, and the weighted-average number of common shares outstanding during the year. If there are stock dilutions (e.g., stock options, warrants, convertible securities), a diluted EPS calculation would adjust the denominator to reflect potential shares that could be issued.

Potential data adjustments and considerations:
- Non-recurring or extraordinary items: remove or exclude these from net income if the problem specifies an adjusted EPS; otherwise, use reported net income.
- Treasury stock: the weighted-average should account for shares repurchased during the year, reducing the average number of shares outstanding.
- Share compounds or splits: adjust the numbers to maintain comparability across periods.

Given there are no answer choices to compare, the next expected step in a typical exercise would be:
1) Identify net income attributable to common shareholders from the income statement for 2020. 
2) Subtract any preferred dividends that reduce earnings available to common shareholders. 
3) Compute the weighted-average number of common shares outstanding during 2020. If the problem provides quarterly data, use the weighted-average approach (e.g., weighting each quarter’s average shares by the number of quarters).
4) Divide the adjusted net income by the weighted-average shares to obtain EPS, and round to two decimals as instructed.

Note about the provided answer: The dataset shows an answer value of 4.28 for this item, but since no answer options are present and no numerical inputs are shown here, we cannot independently verify the calculation steps or confirm that 4.28 is correct without the underlying financial figures. If you have the income statement and share data for 2020, you can apply the steps above to reproduce or verify that result.

In summary, with complete figures for net income attributable to common shareholders, any preferred dividends, and the weighted-average common shares for 2020, you would perform the EPS calculation as outlined and then round to two decimals to match the formatting instruction.

COMM_V 293 101 102 103 2025W1 2025 W1 COMM 293 FINAL Exam- Dec. 17 8:30 AM - 11:00 AM PST - Requires Respondus LockDown Browser

CANADIAN TIRE- Part 8 of 11 Use two decimal points. Do not add percentage (%), or times (X) with the number. Calculate EPS in 2020 [A]

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