Which of the following statements is untrue regarding earnings per share?

Multiple Choice

A company has a simple capital structure if it has no outstanding securities that could potentially dilute earnings per share.

When shares are retired, they are time$-$weighted for the fraction of the period they were not outstanding, prior to being subtracted from the

number of shares outstanding during the reporting period.

Dividends paid on nonconvertible preferred stock outstanding should be subtracted from reported net income.

Any new shares issued during the period in a stock dividend or stock split are time$-$weighted by the fraction of the period they were

outstanding and then added to the number of shares outstanding for the period