Companies with a complex capital structure report:

Question

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Companies with a complex capital structure report both basic EPS and diluted EPS. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS takes into account the potential dilutive effect of securities such as stock options, warrants, and convertible securities on the earnings per share calculation. Since companies with complex capital structures may have securities that could potentially dilute EPS, both basic and diluted EPS must be reported to provide a complete picture of the company's earnings per share.

Companies with a Complex Capital Structure Report