Diluted Earnings Per Share

LOS g. Describe how earnings per share is calculated and calculate and interpret a company’s earnings per share (both basic and diluted earnings per share) for both simple and complex capital structures;

LOS h. Distinguish between dilutive and antidilutive securities and describe the implications of each for the earnings per share calculation;

Terms covered: Diluted EPS, Dilutive securitiesConvertible preferred shares, Convertible bonds

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