BUS 320 Lecture Notes - Lecture 2: Retained Earnings, Income Statement, Earnings Before Interest And Taxes

• School: NCSU
• Department: Business Management
• Course: BUS 320
• Professor: Carl Luke Davis Jr

Document Summary

Covers revenues and expenses over a defined period of time. Earning per share = arnings available to common stockholders common shares outstanding. Common stockholders (receive dividends after preferred stockholders) Interpreted in terms of number of outstanding shares. May be paid out in dividends or retained by company for subsequent reinvestment. Multiplier applied to earnings per share to determine current value of common stock. Allows relative market value comparison of many companies. Cash flows from operating activities + cash flows from investing activities + cash flows from financing activities = net increase (or decrease) in cash. Beginning retained earnings + net income available to common stockholders - dividends paid to common stockholders = ending retained earnings. Earnings before interest and taxes (ebit) or operating income (oi) Earnings after taxes (eat) or net income (ni) Dividends per share = ommon stocks dividends t otal ($) number of shares outstandings. Earnings available to common shareholders = common stock dividends total + retained.