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

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Wilford

1 months ago

Preference share dividends? More like preferential treatment if you ask me. But hey, at least we know it's not part of the EPS equation.

upvoted 0 times

Kerry

4 days ago

I agree, preference share dividends seem like a special treatment.

upvoted 0 times

...

Wava

1 months ago

Preference share dividends, really? I bet the exam writer was just trying to trip us up with that one. Sneaky, but I'm onto them!

upvoted 0 times

Carmela

13 days ago

C) The most recent earnings after interest and tax of ABC

upvoted 0 times

...

Maddie

19 days ago

B) The number of shares ABC has in issue

upvoted 0 times

...

Brittney

26 days ago

A) The market price of ABC's share

upvoted 0 times

...

Truman

2 months ago

Ah, I see! The market price of the shares is not needed for EPS. Makes sense, since that's more for the P/E ratio. Just gotta focus on the earnings and shares outstanding.

upvoted 0 times

Marlon

15 days ago

Dong: Dividend payment to preference shareholders is not relevant for EPS.

upvoted 0 times

...

Dong

28 days ago

User 2: Exactly, we just need earnings and shares for EPS calculation.

upvoted 0 times

...

Dewitt

1 months ago

User 1: Yeah, you're right. The market price is for P/E ratio.

upvoted 0 times

...

Billye

2 months ago

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

upvoted 0 times

Belen

20 days ago

User 4: Yeah, it's important to get all the details right when calculating EPS.

upvoted 0 times

...

Rachael

21 days ago

User 3: Thanks for clarifying that. I'll make sure to remember that for next time.

upvoted 0 times

...

Lucille

27 days ago

User 2: No, they're not. It's all about the market price, number of shares, and earnings after interest and tax.

upvoted 0 times

...

Aileen

2 months ago

User 1: I always thought preference share dividends were included in EPS calculations.

upvoted 0 times

...

Ludivina

2 months ago

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

upvoted 0 times

Cheryl

19 days ago

Exactly, it's important to remember that when calculating EPS for ABC plc.

upvoted 0 times

...

Tomas

20 days ago

Yeah, you're right. The dividend payment made to holders of preference shares is not needed for calculating EPS.

upvoted 0 times

...

Felicidad

21 days ago

D) The dividend payment made to holders of preference shares

upvoted 0 times

...

Suzi

22 days ago

C) The most recent earnings after interest and tax of ABC

upvoted 0 times

...

Lynna

24 days ago

B) The number of shares ABC has in issue

upvoted 0 times

...

Gail

26 days ago

A) The market price of ABC's share

upvoted 0 times

...

Keneth

27 days ago

Yeah, that's right. The dividend payment to preference shareholders is not needed for EPS calculation.

upvoted 0 times

...

Larae

28 days ago

D) The dividend payment made to holders of preference shares

upvoted 0 times

...

Yuette

1 months ago

C) The most recent earnings after interest and tax of ABC

upvoted 0 times

...

Lindsey

1 months ago

B) The number of shares ABC has in issue

upvoted 0 times

...

Rodolfo

2 months ago

A) The market price of ABC's share

upvoted 0 times

...

Vivienne

2 months ago

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

upvoted 0 times

...

Olen

2 months ago

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

upvoted 0 times

...

Sharika

2 months ago

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

upvoted 0 times

...

Noelia

2 months ago

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

upvoted 0 times

...

Owen

2 months ago

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

upvoted 0 times

...

Terrilyn

3 months ago

I think the answer is D.

upvoted 0 times

...