Which statement would be most consistent with the Treasury Stock Method of calcu
ID: 2778903 • Letter: W
Question
Which statement would be most consistent with the Treasury Stock Method of calculating diluted earnings per share:
The current market price of a Company's common shares has no bearing on the calculation of earnings per share
The best possible investment for a company is in its own common shares.
The main concern with the Treasury Stock Method is that it is always anti-dilutive to per share earnings.
It is more conservative to use basic shares outstanding than diluted share outstanding when calculating EPS
A.The current market price of a Company's common shares has no bearing on the calculation of earnings per share
B.The best possible investment for a company is in its own common shares.
C.The main concern with the Treasury Stock Method is that it is always anti-dilutive to per share earnings.
D.It is more conservative to use basic shares outstanding than diluted share outstanding when calculating EPS
Explanation / Answer
Option C This statement is most suitable that the main concern with the tresury stock method is that it is always anti dilutive to per share earnings.
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