Q29: Share-based compensation and EPS Homework. Unanswered MedAm Inc. is preparing its earnings per share disclosures. The accountants have calculated basic earnings per share and, while working on the diluted earnings per share, was calculating the incremental effect of each potential change in common shares outstanding. For one convertible bond issue (which was not converted to common shares), MedAm discovered that the incremental EPS effect for that particular bond was greater than the basic earnings per share. This is know as a(n) O A Dilutive security o B Anti-dilutive security O C Negative basic security O D Reverse dilutive security O E Anomalous security