____ earnings per share are calculated based on the assumption that all dilutive securities are converted into common shares.
A) Primary
B) Full primary
C) Fully diluted
D) First class

Question

Quizplus · Accepted Answer

Fully diluted earnings per share take into account all potential dilution from outstanding securities, including options, warrants, convertible bonds, etc. This provides a more accurate picture of the company's earnings per share, assuming all dilutive securities are converted to common shares. Primary earnings per share only consider the common shares outstanding and do not take into account potential dilution. Full primary earnings per share is not a commonly used financial term. First class earnings per share is not a valid term in finance.

____ Earnings Per Share Are Calculated Based on the Assumption