How do outstanding subsidiary stock warrants affect the calculation of 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.

Question

Quizplus · Accepted Answer

Outstanding subsidiary stock warrants are included in diluted earnings per share if they are dilutive, as they can potentially increase the number of shares outstanding.

How Do Outstanding Subsidiary Stock Warrants Affect the Calculation of Consolidated