Which of the following statements is not true about diluted EPS (DEPS)? a. Stock options that are

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Which of the following statements is not true about diluted EPS (DEPS)?

a. Stock options that are in the money will always cause DEPS to be less than basic EPS.

b. Convertible bonds, if dilutive, will cause changes in both the numerator and the denominator of DEPS.

c. Stock analysts tend to concentrate their attention on DEPS instead of basic EPS.

d. A company’s only equity contract that can lead to dilution is stock options.

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Financial Accounting

ISBN: 9781618531650

5th Edition

Authors: Michelle Hanlon, Robert Magee, Glenn Pfeiffer, Thomas Dyckman

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