Warrants are considered only in the computation of diluted earnings per share.

Name: Warrants are considered only in the computation of diluted earnings per share.
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Question

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Warrants are considered in the computation of diluted earnings per share because they can potentially increase the number of outstanding shares. Diluted earnings per share takes into account all potential dilutive securities, including stock options, convertible debt, and warrants.

Warrants Are Considered Only in the Computation of Diluted Earnings