 ### Calculating diluted earnings per share is a way to account for all shares a company might issue.

3/31/ · The Diluted EPS Formula is a calculation of earnings per share after adjusting the number of shares outstanding for dilutive securities, options, warrants. Diluted EPS Formula = (net income - preferred dividends) / (basic shares + conversion of any in . The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy treasury stock at: A. The average market price for the reporting period. B. The market price at the end of the period. C. The purchase price stated on the options. D. The stock's par value. 6/22/ · Diluted earnings per share Diluted EPS Formula and Calculation The Diluted EPS Formula is a calculation of earnings per share after adjusting the number of shares outstanding for dilutive securities, options, warrants. Diluted EPS Formula = (net income - preferred dividends) / (basic shares + conversion of any in-the-money options, warrants, and other dilutions) is derived by taking net . ### What is Diluted Earnings Per Share?

When computing diluted earnings per share, stock options: A) Are included if they are antidilutive. B) Should be ignored. C) Are included if they are dilutive. D) Increase the numerator while not affecting the denominator. Answer: C Learning Objective: 9 Level of Learning: 2 Basic and diluted earnings per share data are required to be reported: A) In footnotes to the financial statements. 12/1/ · The formula for diluted earnings per share is a company's net income (excluding preferred dividends) divided by its total share count -- including both outstanding and diluted shares. Author: John Bromels. 3/31/ · The Diluted EPS Formula is a calculation of earnings per share after adjusting the number of shares outstanding for dilutive securities, options, warrants. Diluted EPS Formula = (net income - preferred dividends) / (basic shares + conversion of any in . 3/31/ · The Diluted EPS Formula is a calculation of earnings per share after adjusting the number of shares outstanding for dilutive securities, options, warrants. Diluted EPS Formula = (net income - preferred dividends) / (basic shares + conversion of any in . 12/1/ · The formula for diluted earnings per share is a company's net income (excluding preferred dividends) divided by its total share count -- including both outstanding and diluted shares. Author: John Bromels. 6/22/ · Diluted earnings per share Diluted EPS Formula and Calculation The Diluted EPS Formula is a calculation of earnings per share after adjusting the number of shares outstanding for dilutive securities, options, warrants. Diluted EPS Formula = (net income - preferred dividends) / (basic shares + conversion of any in-the-money options, warrants, and other dilutions) is derived by taking net .  