Question

Colgate reported Diluted EPS of $2.38 in accordance with GAAP. How much higher would EPS be if Colgate ignored the impact of restructuring and other one-time charges during the period

Answer 1

Answer:

EPS will be higher than $2.38

Explanation:

The Earnings per share is the value available to stockholders of the company after the deduction of all the expense and taxes. Restructuring expense are one time expense and they are reported as other operating expenses in the Income Statement. The inclusion of restructuring and other one-time charges in the Income Statement results in lower Earnings before Tax and ultimately reduced net profit. If these cost are excluded the Earning will rise which will give rise to EPS of the company.