publicly traded companies are required to report earnings per share data on the
ID: 2365270 • Letter: P
Question
publicly traded companies are required to report earnings per share data on the face of the income statement. compare and contrast basic earnings per share with diluted earnings per share for each of the following: a.The effect of dilutive stock options and warrants on the number of shares used in computing earnings per share. b. The effect of diluted convertible securities on the number of shares used in computing earnings per share data. c. The effect of anti diluted securities in computing earnings per share.Explanation / Answer
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a. The basic earning per share will depend on the total profit of the company while the diluted earning might depend on the amount of money taken by the company from that particular share.
b. The security of the earning of your shares will depend on the company you are investing in, its reliability and reputation
c. It will most probably be more as it is not diluted.
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