________ earnings per share measures the amount of profit a firm earns per share of outstanding common stock when preferred stock, stock options, warrants, and convertible debt securities are also taken into account.
A) Basic
B) Diluted
C) Restricted
D) Broad-based

Question

Quizplus · Accepted Answer

Diluted earnings per share takes into account stock options, convertible preferred stock, warrants, and other convertible debt securities in the earnings per share calculation. The addition of these sources of funds will dilute the earnings per share. It will be something less than the basic earnings per share calculation.

________ Earnings Per Share Measures the Amount of Profit a Firm