Samsung 2007 Annual Report Download - page 122

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
continued
Net income as reported on the statements of income
￦
7,420,579
￦
7,926,087
Adjustments:
Dividends for preferred stock (159,823) (112,408)
Undeclared participating preferred stock dividend (825,162) (965,779)
Excess of purchase price of preferred stock (169,607) -
Net income available for common stock 6,265,987 6,847,900
Weighted-average number of common shares outstanding 126,580,267 129,499,781
Earnings per share (in Korean won)
￦
49,502
￦
52,880
2007 2006
(In millions of Korean won and number of shares)
Stock options 1,494,909 365/365 1,494,909
Stock options 1,888,379 365/365 1,888,379
(In millions of Korean won and number of shares)
25. EARNINGS PER SHARE
Earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the year.
Basic earnings per share for the years ended December 31, 2007 and 2006, are calculated as follows:
The number of dilutive shares of outstanding stock options is calculated by applying the treasury stock method.
Under the treasury stock method, the proceeds from the exercise of the stock options are assumed to be used to purchase common
stock at the average market price. The incremental number shares which is the difference between the number of shares assumed to
be issued and the number of shares assumed to be purchased, is included in the denominator in calculating diluted earnings per share.
1. Common equivalent shares:
2007 Number of shares Weight Common Stock Equivalent
2006 Number of shares Weight Common Stock Equivalent
Diluted earnings per share for the years ended December 31, 2007 and 2006, are calculated as follows:
Net income available for common stock
￦
6,265,987
￦
6,847,900
Adjustment: Compensation expense for stock options - -
Net income available for common stock and common equivalent shares 6,265,987 6,847,900
Weighted-average number of shares of common stock and common equivalent
shares 1 outstanding 128,075,176 131,388,160
Diluted earnings per share (in Korean won)
￦
48,924
￦
52,120
2007 2006