GLOBUS QUIZ 2 KEY CONCEPTS AND TOPICS
GUIDE 2026
◉ How do you calculate total annual dividends? Answer: Dividends
per share x number of shares outstanding
◉ If a company issues new shares, what happens to EPS? Answer:
EPS decreases unless net income rises proportionally
◉ What is the formula for straight-line depreciation? Answer: Cost
of assets/ useful life (years)
◉ How does adding workstations affect annual depreciation?
Answer: Annual depreciation increased by (cost per workstation x
added number) / useful life
◉ Formula for Earnings per Share (EPS)? Answer: Net income/
number of shares outstanding
◉ Formula for retained earnings for the year? Answer: Net income -
total dividends paid
GUIDE 2026
◉ How do you calculate total annual dividends? Answer: Dividends
per share x number of shares outstanding
◉ If a company issues new shares, what happens to EPS? Answer:
EPS decreases unless net income rises proportionally
◉ What is the formula for straight-line depreciation? Answer: Cost
of assets/ useful life (years)
◉ How does adding workstations affect annual depreciation?
Answer: Annual depreciation increased by (cost per workstation x
added number) / useful life
◉ Formula for Earnings per Share (EPS)? Answer: Net income/
number of shares outstanding
◉ Formula for retained earnings for the year? Answer: Net income -
total dividends paid