kamara5

Whether the securities are dilutive or antidilutive before actually calculating diluted EPS:

conv debt:

[interest payment on conv debt * (1 - tax rate) / convertible debt number of shares] < basic EPS => dilutive security

[interest payment on conv debt * (1 - tax rate) / convertible debt number of shares] > basic EPS => antidilutive security

conv preferred stock:

[dividend on preferred stock / number of shares created if converted] < basic EPS => dilutive security

[dividend on preferred stock / number of shares created if converted] > basic EPS => antidilutive security