FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
To calculate diluted EPS, the accountant does all of the following except:
adds back to net income any compensation expense recognized on the employee stock
options
adds back any interest expense (net of taxes) on convertible bonds
adds back any dividends on convertible
net income to common shareholders.
enters only the net incremental shares issued (shares issued under options minus assumed
shares repurchased) in the computation of diluted EPS.
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