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
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.