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Basic Question 31 of 40
Which of the following statements regarding basic and diluted earnings per share (EPS) is TRUE?
B. If diluted EPS is less than basic EPS, the convertible securities are said to be antidilutive.
C. Neither basic nor diluted EPS considers antidilutive securities in its computation.
A. To calculate diluted EPS, use net income less preferred dividends in the numerator.
B. If diluted EPS is less than basic EPS, the convertible securities are said to be antidilutive.
C. Neither basic nor diluted EPS considers antidilutive securities in its computation.
User Contributed Comments 7
| User | Comment |
|---|---|
| wroger | What is wrong with B? |
| poker | the opposite of B is true. |
| jerrick | for B to be true... diluted eps should be GREATER than basic eps |
| julescruis | read the question roger |
| MattNYC | Use the following rule = Anitdilutive -> ignore |
| ldfrench | more like "Wronger" haha right, you guys? |
| Znanje35 | HAHA |
Your review questions and global ranking system were so helpful.
Lina
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.