Asked by Veronica Burrs on Jun 16, 2024
Verified
The diluted EPS figure is a conservative measure of the earnings flow to each share of stock.
Diluted EPS
Earnings per share calculated under the assumption that all convertible securities and options have been converted into additional shares, potentially lowering the EPS.
- Recognize the essentials and outcomes of the present GAAP on the determination of earnings per share.
Verified Answer
BK
BENNY KIWELU.Jun 22, 2024
Final Answer :
True
Explanation :
Diluted EPS takes into account potential dilution from convertible securities or options, so it is a more conservative measure of earnings per share.
Learning Objectives
- Recognize the essentials and outcomes of the present GAAP on the determination of earnings per share.
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