Which of the following statements about antidilutive securities and their effect on EPS are true? (Select all that apply.)

Check All That Apply

Dilutive securities are ignored when calculating both basic and diluted EPS.

It is not immediately obvious whether the effect of the conversion of a particular convertible security would be dilutive or antidilutive.

If the effect of the conversion or exercise of potential common shares would be to increase EPS, the related securities are referred to as antidilutive securities.

To determine whether convertible securities are dilutive, we can compare the incremental effect of the conversion (expressed as a fraction) with the EPS fraction before the effect of any convertible security is considered.