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

Which ONE of the following is NOT required in calculating the EPS of ABC plc?
B) The number of shares ABC has in issue
A) The market price of ABC's share
C) The most recent earnings after interest and tax of ABC
D) The dividend payment made to holders of preference shares

CIMAPRA17-BA1-1 Exam - 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?

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Suggested Answer: B

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

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Malika
8 months ago
The dividend payment is irrelevant here, right?
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Filiberto
8 months ago
Definitely need the number of shares in issue.
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Dalene
8 months ago
Wait, are we sure about that? Seems odd.
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Major
9 months ago
Totally agree, it's all about earnings and shares!
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Jerrod
9 months ago
The market price isn't needed for EPS calculation.
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Rasheeda
9 months ago
I’m leaning towards option A being the answer since EPS focuses on earnings and shares, not the market price.
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Keith
9 months ago
I practiced a similar question, and I feel like the earnings after tax is crucial, but I’m uncertain about the dividend payments.
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Alfreda
9 months ago
I think the number of shares is definitely required, but I can't recall if preference dividends factor into EPS.
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Merilyn
9 months ago
I remember EPS calculations, but I'm not sure if the market price is needed. It seems more related to valuation than earnings.
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Veronika
9 months ago
I'm a bit unsure on this one. I know EPS has to do with the company's profitability, but I'm not 100% sure which specific factors are required. I'll have to think it through carefully.
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Providencia
9 months ago
Okay, I remember learning about EPS in class. I think the key things are the net income and the number of common shares outstanding. The market price and preference share dividends aren't directly relevant.
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Daniel
9 months ago
Hmm, let me think this through. EPS is all about the company's earnings, so I'm guessing the dividend payment to preference shareholders wouldn't be needed, since that's not part of the core earnings.
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Roxane
10 months ago
I'm pretty confident I know the answer to this one. The market price of the share is not required to calculate EPS, as that's just the share price, not the actual earnings.
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Corrinne
10 months ago
Hmm, I'm a bit confused about the part where it says the skilled labour is fully utilized on other contracts. Does that mean we can't use any of that labour for this contract?
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Rosann
10 months ago
I'm a bit confused by the different web service interactions in the two designs. I'll need to make sure I understand the flow of data and communication between OneBase and Blue Prism before I can decide which design is better.
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Isreal
10 months ago
Hmm, I'm a bit unsure about this one. The options seem to cover different process improvement tools, but I'm not sure which one specifically deals with training personnel to maintain improvements. I'll have to think this through carefully.
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Laurel
10 months ago
I think the key here is to look for a functional relationship between the intervention and the target behavior. Option A seems like the most confident interpretation based on the data display.
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Mammie
10 months ago
I think we had a similar example in class where we calculated the positions for hedging shares with calls, but I can't quite remember the exact formula to use.
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Wilford
1 year 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.
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Carrol
1 year ago
Yes, the dividend payment made to holders of preference shares is not required for EPS calculation.
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Tricia
1 year ago
The market price of ABC's share is needed to calculate EPS.
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Kerry
1 year ago
I agree, preference share dividends seem like a special treatment.
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Wava
1 year 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!
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Carmela
1 year ago
C) The most recent earnings after interest and tax of ABC
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Maddie
1 year ago
B) The number of shares ABC has in issue
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Brittney
1 year ago
A) The market price of ABC's share
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Truman
1 year 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.
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Marlon
1 year ago
Dong: Dividend payment to preference shareholders is not relevant for EPS.
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Dong
1 year ago
User 2: Exactly, we just need earnings and shares for EPS calculation.
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Dewitt
1 year ago
User 1: Yeah, you're right. The market price is for P/E ratio.
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Billye
1 year 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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Belen
1 year ago
User 4: Yeah, it's important to get all the details right when calculating EPS.
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Rachael
1 year ago
User 3: Thanks for clarifying that. I'll make sure to remember that for next time.
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Lucille
1 year ago
User 2: No, they're not. It's all about the market price, number of shares, and earnings after interest and tax.
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Aileen
1 year ago
User 1: I always thought preference share dividends were included in EPS calculations.
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Ludivina
1 year 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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Cheryl
1 year ago
Exactly, it's important to remember that when calculating EPS for ABC plc.
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Tomas
1 year ago
Yeah, you're right. The dividend payment made to holders of preference shares is not needed for calculating EPS.
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Felicidad
1 year ago
D) The dividend payment made to holders of preference shares
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Suzi
1 year ago
C) The most recent earnings after interest and tax of ABC
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Lynna
1 year ago
B) The number of shares ABC has in issue
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Gail
1 year ago
A) The market price of ABC's share
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Keneth
1 year ago
Yeah, that's right. The dividend payment to preference shareholders is not needed for EPS calculation.
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Larae
1 year ago
D) The dividend payment made to holders of preference shares
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Yuette
1 year ago
C) The most recent earnings after interest and tax of ABC
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Lindsey
1 year ago
B) The number of shares ABC has in issue
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Rodolfo
1 year ago
A) The market price of ABC's share
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Vivienne
1 year 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
1 year ago
I agree with Sharika. The EPS calculation only considers common shares, not preference shares.
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Sharika
1 year ago
I think the answer is D) The dividend payment made to holders of preference shares.
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Noelia
1 year 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
1 year ago
I agree with Terrilyn. Dividend payment to preference shareholders is not relevant for EPS calculation.
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Terrilyn
1 year ago
I think the answer is D.
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