Question: ABC Corp has a basic EPS for the year ended Dec 31, 2021 of $3.50. ABC Corp also has several convertible securities and their corresponding

ABC Corp has a basic EPS for the year ended Dec 31, 2021 of $3.50. ABC Corp also has several convertible securities and their corresponding dilution/incremental EPS has been calculated for you. Which of the following convertible securities is the most dilutive in the calculation of diluted EPS?

Question 3 options:

Convertible bonds with an incremental EPS of $2.20

Convertible bonds with an incremental EPS of $6.00

Convertible preferred shares with an incremental EPS of $2.85

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