For DPS and EPS, the answer is "Yes". Those calculations use common shares
outstanding in the denominator. Common shares outstanding = Common shares issued - Treasury stock.
Return on Common Equity is a little different. You still need to factor in treasury stock, but in this calculation, it's probably easier to start with total equity and subtract out preferred equity.
Hope this helps and good luck!
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Michael Ramsey
Director/Manager
Omaha NE
United States
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Original Message:
Sent: 10-29-2020 02:37 AM
From: Harsh Nair
Subject: Treasury Stock
Hello Friends,
My query is regarding "Treasury Stocks", do we consider it while calculating "DPS", "EPS" and "Return on Common Equity", if the company holds such stocks in its books.
Thanks & Regards
Harsh