Diluted earnings per share calculations.
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In the diluted earnings per share calculation, the treasury shares method is used for options and warrants to reflect assumed reacquisition of common shares at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the calculation would:
Fairly present diluted earnings per share on a prospective basis fairly present the maximum potential dilution of diluted earnings per share on a prospective basis reflect the excess of the number of shares assumed issued over the number of shares assumed reacquired as the potential dilution of earnings per share or be anti-dilutive? why?
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Solution Summary
Diluted earnings per share are calculated. The number of shares assumed reacquired as the potential dilution of earnings per share or anti-dilutive are determined.
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