CFA Level 1 | FRA: Basic and Diluted Earnings Per Share (EPS)

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CFA Level 1
Topic: Financial Reporting & Analysis
Reading: Understanding Income Statements
In this video, I illustrate 1 case of calculating basic EPS and 4 cases of calculating diluted EPS. Watch out for the adjustments in the diluted EPS for each security!
00:00 Basic EPS
02:13 Diluted EPS - Convertible Preferred Shares
05:22 Diluted EPS - Convertible Debt
09:00 Why add back after-tax interest on convertible debt?
11:30 Antidilutive securities
13:45 Diluted EPS - Stock Options/Warrants
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[@purpleblush7106]

seriously Fabian, your videos are god send. my sincere thanks to you.

[@cekirdekci32]

omg. you really saved my life with this . i ve been studing on this and was not able to understand. thank you do much I appreciate it . and following you:)

[@FabianMoa]

I'm so glad! A lot more videos on Level 2 and 3

[@chatoyer8771]

Thanks Fabian - really well explained!

[@FabianMoa]

Glad it was helpful!

[@t_grumpynoodle]

Excellent Video.

[@yannafranco779]

Thank you x

[@breathetoprosper]

great vid

[@FabianMoa]

Thanks!

[@wangsarah8288]

Life saving video, wondering if you have a whole series for CFA 1

[@FabianMoa]

You can check out the playlist on my channel. I don't have the whole series, just selected snippets

[@zhideliang]

To test whether the preferred share is anti-dilutive, is it ok to use : “preferred dividend / increased share due to conversion “, and compare the result with Basic EPS? Thanks

[@FabianMoa]

Nope

[@Matti_us_Alpe]

Fabian, would you have any hint how to manage this type of task given the 90 seconds?

[@FabianMoa]

I would say repetitive practise on the same type of question shortens the required time.
On the other hand, 90 seconds is just an average time. Conceptual-based questions normally take less than 90 seconds to answer, so you should be able to spend more than 90 seconds on calculation-based questions

[@Matti_us_Alpe]

@@FabianMoa Thank you Fabian.