Question

Question 23 Earnings per share (EPS) in 2013 decreased to $0.01 compared to 2014 and 2012 when the EPS were $2.75 and $1.83, respectively. What was the reason behind this sudden drop of EPS in 2013? This drop was attributable to a loss in Starbucks' foreign markets. Starbucks' share price had a significant drop in 2013 resulting in such a drop in EPS. Starbucks calculated EPS in 2013 using a different methodology. Fiscal year 2013 results include a pretax charge of $2,784,1 million resulting from the arbitration with Kraft Foods Global, Inc. This charge significantly reduced EPS in 2013,

Answer 1

23	EPS =Earnings attributable to equity shareholders / No. of equity shares outstanding
	Since in Fiscal year 2013 there is a charge of $2784.10 million hence the Earnings
	for equity shareholders had decreased for 2013 and that is the reason why the EPS
	has reduced to $0.01
	So Option D is answer