How Do Subsidiary Stock Warrants Outstanding Affect Consolidated Earnings Per

question 6

Multiple Choice

How do subsidiary stock warrants outstanding affect 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:

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders by gradually exposing them to the feared object or situation in a controlled manner.

Cognitive Therapy

A form of psychotherapy focused on changing negative patterns of thought to improve emotional well-being and behavior.

Group Therapy

A form of psychotherapy where multiple individuals share and work on their issues in a guided group setting, fostering support and understanding.

Social Skills

Abilities necessary for effective interpersonal behaviors and communication, such as empathy, cooperation, and conflict resolution.