CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following statements concerning the calculation and reporting of fully-diluted earnings per share is correct?
A. Firms are required to report fully-diluted EPS only if it differs from simple EPS by more than 5%.
B. If any individual common stock equivalent is antidilutive, it should be excluded from the EPS calculation.
C. If some individual common stock equivalents are dilutive and others are antidilutive, their net effect should be included in the EPS calculation only if it is dilutive.

User Contributed Comments 2

User Comment
danlan How is C?
Bibhu C is wrong. It says their "Net Effect". Antidilutive are never taken into consideration. Then why should we bother about their net effect.
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