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Question 1 When calculating diluted EPS, which of the following, if dilutive, would cause the weighted average number of shares to increase? Dividends on preferred

Question 1

When calculating diluted EPS, which of the following, if dilutive, would cause the weighted average number of shares to increase?

Dividends on preferred stockStock optionsa.YesNob.YesYesc.NoYesd.NoNo

Multiple Choice

  • Option a
  • Option b
  • Option c
  • Option d

(For Question 1, option b is incorrect, what is the correct answer)

Question 2

Convertible bonds that are dilutive generally affect the calculation of:

Basic EPSDiluted EPSa.YesYesb.YesNoc.NoNod.NoYes

Multiple Choice

  • Option a
  • Option b
  • Option c
  • Option d

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