When computing dilutive EPS, the treasury stock method can be used for all of the following except
A) convertible preferred stock.
B) stock warrants.
C) stock options.
D) stock rights.

Question

Quizplus · Accepted Answer

Convertible preferred stock is not included in the treasury stock method for computing dilutive EPS because it is considered to be a form of debt, not equity.

When Computing Dilutive EPS, the Treasury Stock Method Can Be