Diluted earnings per share for securities
Earnings Per Share Concepts
Indicate which of the following securities would be included
in the computation of “basic earnings per share,” and which would
be included in the computation of “diluted earnings per share.”
Place a “B” before those which affect only basic EPS, a “D” before
those which affect only diluted EPS, a “BD” before those which
affect both basic and diluted EPS, and an “N” before those
securities which do not affect EPS computations. Assume that, where
applicable, the appropriate securities are dilutive.0. Notes
payable.1. Executive stock options.2. Convertible bonds.3.
Cumulative, nonconvertible preferred stock.4. Warrants to purchase
additional common shares.5. Common stock.6. Nonconvertible
debenture bonds.7. Convertible preferred stock.The solution
discusses the diluted earnings per share.
Diluted earnings per share for securities
Earnings Per Share Concepts
Indicate which of the following securities would be included
in the computation of “basic earnings per share,” and which would
be included in the computation of “diluted earnings per share.”
Place a “B” before those which affect only basic EPS, a “D” before
those which affect only diluted EPS, a “BD” before those which
affect both basic and diluted EPS, and an “N” before those
securities which do not affect EPS computations. Assume that, where
applicable, the appropriate securities are dilutive.0. Notes
payable.1. Executive stock options.2. Convertible bonds.3.
Cumulative, nonconvertible preferred stock.4. Warrants to purchase
additional common shares.5. Common stock.6. Nonconvertible
debenture bonds.7. Convertible preferred stock.The solution
discusses the diluted earnings per share.
Diluted earnings per share for securities
Earnings Per Share Concepts
Indicate which of the following securities would be included
in the computation of “basic earnings per share,” and which would
be included in the computation of “diluted earnings per share.”
Place a “B” before those which affect only basic EPS, a “D” before
those which affect only diluted EPS, a “BD” before those which
affect both basic and diluted EPS, and an “N” before those
securities which do not affect EPS computations. Assume that, where
applicable, the appropriate securities are dilutive.0. Notes
payable.1. Executive stock options.2. Convertible bonds.3.
Cumulative, nonconvertible preferred stock.4. Warrants to purchase
additional common shares.5. Common stock.6. Nonconvertible
debenture bonds.7. Convertible preferred stock.The solution
discusses the diluted earnings per share.
Diluted earnings per share for securities
Earnings Per Share Concepts
Indicate which of the following securities would be included
in the computation of “basic earnings per share,” and which would
be included in the computation of “diluted earnings per share.”
Place a “B” before those which affect only basic EPS, a “D” before
those which affect only diluted EPS, a “BD” before those which
affect both basic and diluted EPS, and an “N” before those
securities which do not affect EPS computations. Assume that, where
applicable, the appropriate securities are dilutive.0. Notes
payable.1. Executive stock options.2. Convertible bonds.3.
Cumulative, nonconvertible preferred stock.4. Warrants to purchase
additional common shares.5. Common stock.6. Nonconvertible
debenture bonds.7. Convertible preferred stock.The solution
discusses the diluted earnings per share.
