Convertible noncumulative preferred stock for which the current year's dividend has not been declared does not affect the EPS figures if it:

Question

Quizplus · Accepted Answer

Convertible noncumulative preferred stock that is anti-dilutive does not affect the EPS figures because anti-dilutive securities, by definition, would increase earnings per share if converted into common stock, and thus are not included in the calculation of diluted EPS.

Convertible Noncumulative Preferred Stock for Which the Current Year's Dividend