7. If the effect of a conversion or exercise of potential common stock increases Eamings Per Share 8. Net Income less current period cumulative preferred stock dividends less non cumulative preferred 9. Investments in debt or equity securities acquired principally for the purpose of selling them in the then the security is considered to be stock dividends equals near term are classified as 10. When a company acquires an investment, not for an active trading account or to be held to maturity, the company classifies its investment as 1. It is presumed that an investor has the ability to exercise over the investee when it owns betwe 20% and 50% of the investees voting shares. 12, when a company acquires more than 50% of the voting stock of another company they are referred to as the and the other company is referred as the