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Conversion of convertible preferred stock to common stock would potentially dilute earnings per share if: the incremental effect of assumed conversion is less than basic
Conversion of convertible preferred stock to common stock would potentially dilute earnings per share if: the incremental effect of assumed conversion is less than basic earnings per share. net income, after considering the decrease in interest expense, decreases. the incremental effect of assumed conversion is greater than basic earnings per share. the number of treasury shares assumed purchased with the proceeds from conversion is less than the number of shares exchanged for the bonds
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