Ask Question
BusinessBusiness
11 August, 11:32

When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:A. Highest incremental effect. B. Higher numerator. C. Median incremental effect. D. Lowest incremental effect.

+5
Answers (1)
  1. 11 August, 11:57
    0
    When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:

    D. Lowest incremental effect

    Explanation:

    Diluted EPS:

    Diluted EPS is known as diluted earning per share which is a method that is used to measure the determine the earning of business per share when all the convertible securities are used.

    Convertible securities are the simply those securities which include, warrants, convertible bonds etc.

    The formula for calculating diluted EPS is as follow:

    Diluted EPS = (Net income - Preferred dividend) / (convertible securities + Outstanding shares)

    So, the option d is correct as in the computation of diluted EPS, lowest incremental effect comes first.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:A. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Garza company had sales of $144,200, sales discounts of $2,175, and sales returns of $3,460. garza company's net sales equals:
Answers (1)
The effect of the FIFO accounting method on inventory valuations during a period of sharply rising prices is: (A) reduce profits (B) reduce tax liability (C) increase the value of the inventory account (D) increase the cost of goods sold
Answers (1)
Each of the following is correct regarding treasury stock except that it has been a. retired. b. issued. c. reacquired. d. fully paid for.
Answers (1)
What would happen if you didn't file taxes? The first time, the IRS would file for you and you'd owe more than you would have if a) a) you had filed yourself, plus penalties and interest.
Answers (2)
The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data. a. The daily demand is 1,700 units. b.
Answers (1)
New Questions in Business
The Nolan Corporation finds it is necessary to determine its marginal cost of capital. Nolan's current capital structure calls for 30 percent debt, 20 percent preferred stock, and 50 percent common equity.
Answers (1)
Gaston owns equipment that cost $17,000 with accumulated depreciation of $3,400. Gaston sells the equipment for $12,200.
Answers (1)
If the supply of loanable funds exceeds the demand then borrowers will bid up the interst rate. True / False.
Answers (1)
The scientific method begins with A. the development of a formal hypothesis. B. the gathering of information. C. the identification of a problem for investigation. D. methodical observation of a phenomenon of interest.
Answers (1)
Charles loves watching downton abbey on his local public tv station, but he never sends any money to support the station during its fundraising drives. economists would call charles afree rider.
Answers (1)
Home » Business » When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:A. Highest incremental effect. B. Higher numerator. C. Median incremental effect. D. Lowest incremental effect.
Sign Up Forgot Password?