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Author: TSWJR Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1670  
Subject: How to Calculate True EPS Date: 10/30/2012 9:38 PM
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I need some help. The formula for calculating EPS is pretty simple, yet plugging in all of the required numbers to ensure the final number reflects the companies reported EPS is turning out to be anything but simple for me.

For the standard formula, it seems pretty easy to take NET Income and divide it by the number of outstanding shares.

But, I believe my issue arrives when I attempt to subtract dividends paid for the quarter, and also attempt to factor in foreign currency impact.

I would like to see if someone can take MCD for example, using their 10Q report found at the below link, and show me the breakdown of what number I need to use as the quarterly dividend paid out, along with factoring in the negative foreign currency impact per share of .07 cents. When I factor both of these numbers in, and then subtract each from the Net Income, finally dividing my the total number of shares listed at the top of the 10Q, I am not coming up with their reported EPS of $1.33 Basic EPS, or the $1.32 diluted EPS.

Link to the MCD 10Q is below:

http://sec.gov/Archives/edgar/data/63908/000119312512336626/...

Really appreciate any efforts toward breaking this down Barney style for me.

Thanks,

TSWJR
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