In ranking dilutive potential ordinary shares,options and warrants are generally included first because they do not affect the numerator of the calculation.

Question

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Options and warrants are included first in the calculation of diluted earnings per share because they typically only affect the denominator (number of shares) and not the numerator (earnings), making them potentially dilutive to the earnings per share calculation.

In Ranking Dilutive Potential Ordinary Shares,options and Warrants Are Generally