Does the if-converted assumption apply only to diluted earnings per share? OA. The if-converted assumption is always applied to diluted EPS, as long as the results are not antidilutive. However, this assumption is also applied to basic EPS in the case of convertible debt and convertible preferred stock OB. The if-converted assumption is always applied to diluted EPS, as long as the results are not antidilutive. However, this assumption is also applied to basic EPS in the case of actual stock dividends and stock splits. OC. The if-converted assumption is always applied to diluted EPS, as long as the results are antidilutive. However, this assumption is also applied to basic EPS in the case of convertible debt and convertible preferred stock OD. The if-converted assumption is always applied to diluted EPS, as long as the results are antidilutive. However, this assumption is also applied to basic EPS in the case of actual stock dividends and stock splits