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What Is the Formula for Diluted EPS? What Are Dilutive

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What is the formula for diluted EPS? What are dilutive and antidilutive potential ordinary shares and how do they each impact the computation of dilutes EPS?


Definitions:

Bond Interest Expense

The cost incurred by an issuer of bonds due to the interest payments made to bondholders.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income.

Contract Interest Rate

The pre-determined rate at which interest is calculated on a loan or financial agreement.

Face Value

The original cost of a bond or stock, as indicated on the certificate; it is also known as the nominal or par value.

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