A company's current stock price is $35.Which of the following securities would causeDiluted EPS to be different than Basic EPS?(check all that apply)Preferred stock that pays $10dividends per share per yearConvertible debt that increases EPSif convertedVested stock options with anexercise price of $40Convertible debt that reduces EPS ifconvertedVested stock options with anexercise price of $30

Earning per share includes the common shares whereas, the diluted earning per share includes the…

Answered: A company's current stock price is $35.…

A company's current stock price is $35. Which of the following securities would cause Diluted EPS to be different than Basic EPS?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company's current stock price is $35.
Which of the following securities would cause
Diluted EPS to be different than Basic EPS?
(check all that apply)
Preferred stock that pays $10
dividends per share per year
Convertible debt that increases EPS
if converted
Vested stock options with an
exercise price of $40
Convertible debt that reduces EPS if
converted
Vested stock options with an
exercise price of $30

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