Question: When computing diluted shares outstanding, shares from the potential conversion of convertible bonds are recognized only if: The conversion price is less than the average

When computing diluted shares outstanding, shares from the potential conversion of convertible bonds are recognized only if:

The conversion price is less than the average stock price for the year.

It would decrease Diluted EPS relative to Basic EPS.

It would increase Diluted EPS relative to Basic EPS.

The conversion price is greater than or equal to the average stock price for the year.

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