"Basic earnings per share" does not include the dilutive effects of all of a firm's convertible bonds.

Name: "Basic earnings per share" does not include the dilutive effects of all of a firm's convertible bonds.
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Basic earnings per share only takes into consideration the current number of outstanding shares and does not factor in the potential dilution from convertible bonds. Therefore, it does not include the dilutive effects of all of a firm's convertible bonds.

"Basic Earnings Per Share" Does Not Include the Dilutive Effects