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Basic Question 30 of 40
When calculating earnings per share (EPS) for firms with complex capital structures, convertible preferred stock is ordinarily considered to be a ______.
B. antidilutive security
C. potentially dilutive security
A. non-equity security
B. antidilutive security
C. potentially dilutive security
User Contributed Comments 1
| User | Comment |
|---|---|
| kalps | Potentially dilutive 1) WIll affect numerator becos of dividend adjustment 2) Will affect number of shares due to conversion |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.