Q9. When calculating earnings per share (EPS) for firms with complex capital structures, stock options are ordinarily considered to be: A) antidilutive securities. B) derivative securities. C) potentially dilutive securities.
Q10. When calculating earnings per share (EPS) for firms with complex capital structures, convertible bonds are ordinarily considered to be: A) embedded debt securities. B) antidilutive securities. C) potentially dilutive securities.
Q11. When calculating earnings per share (EPS) for firms with complex capital structures, convertible preferred stock is ordinarily considered to be a: A) potentially dilutive security. B) non-equity security. C) antidilutive security.
Q12. Which of the following statements regarding the treasury stock method of computing diluted shares is least accurate? The treasury stock method: A) assumes that the hypothetical funds received by the company from the exercise of the options are used to sell shares of the company’s common stock in the market at the average market price. B) is used when the exercise price of the option is less than the average market price. C) increases the total number of shares by less than the number that the exercise of the options would create.
Q13. Which of the following statements is TRUE regarding the reporting of earnings per share (EPS)? A) Diluted EPS must be less than or equal to basic EPS. B) The EPS when antidilutive securities are converted into shares of common stock is less than basic EPS. C) Basic EPS can be less than diluted EPS.
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发表于 2009-1-17 09:43
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