If convertible debt is issued during the year, the total interest expense for the entire year must be added to the numerator of the diluted EPS calculation.

Name: If convertible debt is issued during the year, the total interest expense for the entire year must be added to the numerator of the diluted EPS calculation.
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Convertible debt interest is only added to the numerator of diluted EPS if the debt is assumed to be converted into equity, and only for the portion of the year it was outstanding.

If Convertible Debt Is Issued During the Year, the Total