When is potentially dilutive security anti-dilutive? A. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential decrease in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive. B. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential decrease in EPS. So if security increases the earnings per share ratio, it is, by definition, anti-dilutive. C. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential increase in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive. D. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential increase in EPS. So if a security increases the earnings per share ratio, it is, by definition, antidilutive.
When is potentially dilutive security anti-dilutive?
A. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential decrease in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive.
B. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential decrease in EPS. So if security increases the earnings per share ratio, it is, by definition, anti-dilutive.
C. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential increase in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive.
D. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential increase in EPS. So if a security increases the earnings per share ratio, it is, by definition, antidilutive.
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