Question: A convertible security may appear to be dilutive when looked
A convertible security may appear to be dilutive when looked at individually but might be antidilutive when included in combination with other convertible securities. How should the order be determined for inclusion of convertible securities in an EPS calculation to avoid including an antidilutive security?
Answer to relevant QuestionsIf stock options and restricted stock are outstanding when calculating diluted EPS, what are the components of the “proceeds” available for the repurchase of shares under the treasury stock method?The fair value of stock options can be considered to comprise two main components. What are they?On October 1, 2011, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the ...Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2010, the ...In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage ...
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