1 1. What is a simple capital structure? What is a complex capital structure? 2 3 2. What is the formula for calculating basic earnings per share? 4 5 6 3. What is the weighted-average number of shares outstanding? 7 8 4. How to adjust for stock dividends and stock splits when calculating the weighted-average number of shares? 9 10 11 5. What is a dilutive security? 12 13 14 6. What is the difference between the basic EPS and the diluted EPS? 15 16 17 7. 18 19 What is an anti-dilutive security? How does it impact the diluted EPS? 20 8. What method should be used to measure the dilutive effects of potential conversion on EPS? 21 22 23 24 9, 25 26 What method should be used to measure the dilutive effects of stock options on EPS?