Why do investors calculate different EPS levels?
1) Tax professionals could see what different taxes would look like at different EPS levels.
2) Some income items can be used to predict future earnings, while others are unusual items that only affect the current year's profits, so EPS should also represent those separate items.
3) EPS helps show what would happen during a liquidation situation.
4) Preferred stock holders want to see what profits they could make if all profits were paid out.