If a company reports both basic and diluted EPS,diluted EPS will always be equal or lower than basic EPS.

Question

Quizplus · Accepted Answer

Diluted EPS takes into account the potential dilution of outstanding securities such as stock options and convertible bonds. This potential dilution would increase the number of shares outstanding, which would decrease EPS. Therefore, diluted EPS can never be higher than basic EPS and is often lower.

If a Company Reports Both Basic and Diluted EPS,diluted EPS