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? Please provide your answer with 2 decimal places, but without $ sign (Ex: 0.50)

Answer 1

Answer:

EPS will be higher than $2.38

Explanation:

The earnings per share are the income that is accessible to the company's shareholders after all the costs and taxes are deducted. Restructuring costs are one-time costs that are recorded in the income statement as other operating expenses.

The presence of restructuring and other one-time costs in the Revenue Statement leads to lower pre-tax earnings and cause decrease in net profit. When these expenses are excluded, the Earning would increase, resulting in the company's EPS.