Firms disclose the potential for the dilution from options they have awarded by reporting ________.
A) diluted total earnings before interest and taxes
B) diluted earnings per share
C) diluted dividend payment
D) diluted total earnings

Question

Quizplus · Accepted Answer

Firms disclose the potential for dilution from options they have awarded by reporting diluted earnings per share. This is the best choice as it is the most common way that companies report the impact of stock options on earnings per share. The other choices are either not commonly used or not relevant to the dilution from stock options.

Firms Disclose the Potential for the Dilution from Options They