18.4: EPS and Dilutive Securities Flashcards
1
Q
Diluted EPS is the EPS that…
A
Would result if all dilutive securities were converted into common shares.
2
Q
Basic EPS is net earnings available to…
A
Common shareholders.
3
Q
Basic EPS = …
A
Net income - Preferred dividends / Weighted average number of shares outstanding.
4
Q
Diluted EPS is a…
A
Measurement used to calculate the EPS if all convertible securities were exercised.
5
Q
Diluted EPS formula:
A
Diluted EPS = NI + Pref.Div. + Paid out to Diluted Securities / Weighted avg shares + Conv.of Diluted Securities
