Diluted earnings per share represents a hypothetical case,showing what earnings per share would be if certain securities were converted into additional shares of common stock.

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Diluted earnings per share assumes that certain securities, such as stock options, convertible bonds, or preferred stock, are converted into additional shares of common stock. This calculation takes into account the potential dilution of the company's earnings per share if these securities were exercised or converted.

Diluted Earnings Per Share Represents a Hypothetical Case,showing What Earnings