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

Name: If a company reports both basic and diluted EPS, diluted EPS will always be lower than basic EPS.
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Quizplus · Accepted Answer

Diluted EPS takes into account the potential dilution of earnings per share if all outstanding stock options and other convertible securities were exercised, while basic EPS does not. Therefore, diluted EPS takes into account a higher number of outstanding shares, which lowers the earnings per share.

If a Company Reports Both Basic and Diluted EPS, Diluted