When Computing Diluted EPS for a Company with a Complex

question 9

Multiple Choice

When computing diluted EPS for a company with a complex capital structure,what is the denominator in the computation?

• A) Number of common shares outstanding at year-end
• B) Weighted-average number of common shares outstanding
• C) Weighted-average number of common shares outstanding plus all other potentially antidilutive securities
• D) Weighted-average number of common shares outstanding plus all other potentially dilutive securities

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