Stock options do not affect the calculation of:
A) Diluted EPS.
B) Weighted-average common shares.
C) The denominator in the diluted EPS fraction.
D) Basic EPS.

Question

Quizplus · Accepted Answer

Stock options do not affect the calculation of Basic EPS, as they are only included in the calculation of Diluted EPS. Basic EPS is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period.

Stock Options Do Not Affect the Calculation Of