Question: What are the differences between basic and diluted earnings per share? 2. What are the differences between the numerator and the denominator in the basic

  1. What are the differences between basic and diluted earnings per share?

2. What are the differences between the numerator and the denominator in the basic and diluted earnings per share calculations?

3. As an investor, do you evaluate a company as a potential investment using basic or diluted earnings per share? Explain your answer.

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