The most common "potential common shares" that may be included in computing DEPS are share options, warrants, and convertible preferred stock and bonds.

Question

Quizplus · Accepted Answer

Potential common shares like share options, warrants, and convertible preferred stock and bonds are indeed commonly included in the computation of Diluted Earnings Per Share (DEPS) because they can potentially dilute the earnings per share if exercised or converted into common stock.

The Most Common "Potential Common Shares" That May Be Included