The Potential Dilutive Effect of the Exercise of Stock Options

question 81

Multiple Choice

The potential dilutive effect of the exercise of stock options or warrants will affect which of the following when calculating diluted earnings per share?

• A)the earnings per share numerator
• B)the earnings per share denominator
• C)both the numerator and the denominator
• D)neither the numerator nor the denominator

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods with carbon dioxide and water, producing oxygen as a byproduct.

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to make products.

Photosynthesis Products

The outputs of the photosynthesis process, primarily oxygen and glucose, produced by green plants, algae, and cyanobacteria.

Photosynthetic Organisms

Life forms that convert light energy into chemical energy through the process of photosynthesis, typically including plants, algae, and certain bacteria.