Earnings per Share Flashcards

1
Q

What counts as complex structure for diluted EPS?

A

1) Convertible securities
2) Warrants and other options
3) Contracts that may be settled in cash or stock
4) Contingent shares

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2
Q

What is diluted EPS formula?

A

Diluted EPS

Income available to the common stock shareholder + interest on dilutive securities (net of tax) / Weighted-average number of common shares, assuming all dilutive securities are converted to common stock.

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