In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would Select one: O A. fairly present the maximum potential dilution of diluted earnings per share on a prospective basis. O B. reflect the excess of the number of shares assumed issued over the number of shares assumed reacquired as the potential dilution of earnings per share. C. be antidilutive. O D. fairly present diluted earnings per share on a prospective basis. Next page Previous page Points out of 1.00 P Flag question Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, will arise when the original debt is converted. The other is Select one: O A. that many corporations can obtain debt financing at lower rates. O B. the fact that equity capital has issue costs that convertible debt does not O C. that convertible bonds will always sell at a premium. O D. the ease with which convertible debt is sold even if the company has a poor credit rating. w J