E 19-24 EPS; concepts; terminology. 

Listed below are several terms and phrases associated with earnings per share. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.

Exercise 19-24

 List A  List B

 1. Subtract preferred dividends.  a. Options exercised.

 2. Time-weighted by 5/12.   b. Simple capital structure.

_ 3. Time-weighted shares assumed issued c. Basic EPS.

plus time-weighted-actual shares. d. Convertible preferred

  stock.

 4. Midyear event treated as if   e. Earnings available to  

common shareholders.

it occurred at the beginning of the  

 reporting period.   f. Antidilutive. 

 5. Preferred dividends do not reduce  g. Increased marketability.

earnings.   h. Extraordinary items.

 6. Single EPS presentation.   i. Stock dividend.

 7. Stock split.  j. Add after-tax interest to 

 numerator.

_ 8. Potential common shares.  k. Diluted EPS.

 9. Exercise price exceeds market price. l. Noncumulative,  

undeclared preferred  

 dividends.

_ 10. No dilution assumed. _

 11. Convertible bonds.  m. Common shares retired in 

August.

 12. Contingently issuable shares.   n. Include in diluted EPS 

when conditions for issuance are met.

_ 13. Maximum potential dilution. 

14. Shown between per share amounts 

for net income and for income from 

continuing operations.