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A company’s current stock price is $35. Which of the following securities would cause Diluted EPS to be different than Basic EPS? (check all that apply)

 
 
 

Diluted EPS will include in-the-money stock options (Vested stock options with an exercise price of $30) and convertible debt that reduces EPS if converted. Out-of-the-money stock options and antidilutive convertible debt will not be included in Diluted EPS. Preferred stock dividends are included in both Basic and Diluted EPS equivalently.

 
 
 

Diluted EPS will include in-the-money stock options (Vested stock options with an exercise price of $30) and convertible debt that reduces EPS if converted. Out-of-the-money stock options and antidilutive convertible debt will not be included in Diluted EPS. Preferred stock dividends are included in both Basic and Diluted EPS equivalently.

 

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