Firms with complex capital structures can use which of the following in calculating EPS?
A) Outstanding convertible bonds.
B) Stock options exercised
C) Stock warrants issued
D) All of these are correct.

Question

Quizplus · Accepted Answer

Firms with complex capital structures can use outstanding convertible bonds, stock options exercised, and stock warrants issued in calculating EPS. These instruments can have a dilutive effect on the earnings per share calculation, so it is important to consider them in order to accurately reflect the impact on shareholder value.

Firms with Complex Capital Structures Can Use Which of the Following