How Do Outstanding Subsidiary Stock Warrants Affect the Calculation of Consolidated

question 42

Multiple Choice

How do outstanding subsidiary stock warrants affect the calculation of consolidated earnings per share?

• A) They will be included in both basic and diluted earnings per share if they are dilutive.
• B) They will only be included in diluted earnings per share if they are dilutive.
• C) They will only be included in basic earnings per share if they are dilutive.
• D) Only the warrants owned by the parent company affect consolidated earnings per share.
• E) Because the warrants are for subsidiary shares, there will be no effect on consolidated earnings per share.

---

Definitions:

Cooperative Work

Collaboration among individuals or groups aimed at achieving common goals or completing tasks efficiently through shared effort and resources.

Cohesive Groups

are tightly-knit clusters of individuals who exhibit a strong sense of belonging and mutual support, leading to higher levels of group effectiveness.

Group Activities

Tasks or events designed to be executed or experienced by multiple individuals together, fostering collaboration, teamwork, and social interaction.

Performance Success

The degree to which an individual, team, or organization meets or exceeds set objectives or expectations.