1. Describe dilutive securities and their effects on the calculation of earnings per share. What are dilutive securities? What are anti-dilutive securities? How are they used in the calculation of earnings per share? Why are they used to calculate earnings per share?
2. Explain how to calculate earnings per share. How is dilutive debt converted for use in the earnings per share calculation? How are dilutive securities converted for use in the earning per share calculation? What is weighted average shares outstanding? How are earnings per share presented?