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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. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
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® 2024 Level I Curriculum, Volume 2, Module 2.