Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 17 of 40
A complex capital structure, for purposes of determining disclosure of diluted EPS, is distinguished from a simple capital structure by the ______.
B. company having preferred stock outstanding
C. company having issued warrants, convertible securities, or options
A. company's use of antidilutive securities
B. company having preferred stock outstanding
C. company having issued warrants, convertible securities, or options
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | How is preferred stock not potentially dilutive? |
| johntan1979 | Ok, got the answer in the next question's answer. Preferred stock is only dilutive if it is convertible. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe how earnings per share is calculated and calculate and interpret a company's basic and diluted earnings per share for companies with simple and complex capital structures including those with antidilutive securities
CFA® 2025 Level I Curriculum, Volume 2, Module 2.