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    Question

    Which of the following is typically excluded from EPS

    (earnings per share) basic calculation?
    A Net profit after tax attributable to equity shareholders Correct Answer Incorrect Answer
    B Weighted average number of shares outstanding Correct Answer Incorrect Answer
    C Preference dividend (if non-cumulative unpaid) subtracted when computing EPS attributable to ordinary shareholders Correct Answer Incorrect Answer
    D Dilutive potential shares are ignored in basic EPS but included in diluted EPS Correct Answer Incorrect Answer

    Solution

    Basic EPS uses the weighted average number of ordinary shares outstanding during the period. Potential ordinary shares (like stock options) are ignored in basic EPS but are included in the calculation of diluted EPS.

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