CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 80 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 80
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which ONE of the following is NOT required in calculating the EPS of ABC plc?

AThe market price of ABC's share

BThe number of shares ABC has in issue

CThe most recent earnings after interest and tax of ABC

DThe dividend payment made to holders of preference shares

Show Suggested Answer

Suggested Answer: B

by Lilli at Jan 24, 2024, 04:05 PM

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Billye

7 days ago

Wait, what? Preference share dividends don't factor into basic EPS? I thought they did! Better double-check that one.

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Ludivina

12 days ago

Hmm, I think the dividend payment made to holders of preference shares is not required for calculating EPS. Gotta remember that one!

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Vivienne

13 days ago

I'm not sure about this one. Can someone explain why dividend payment to preference shareholders is not required for EPS calculation?

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Olen

13 days ago

I agree with Sharika. The EPS calculation only considers common shares, not preference shares.

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Sharika

15 days ago

I think the answer is D) The dividend payment made to holders of preference shares.

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Noelia

17 days ago

I'm not sure, but I think it's C. Earnings after interest and tax are definitely needed for EPS calculation.

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Owen

18 days ago

I agree with Terrilyn. Dividend payment to preference shareholders is not relevant for EPS calculation.

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Terrilyn

23 days ago

I think the answer is D.

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