alleryStart learning →Which instrument counts as dilutive potential common stock?
AShare warrants
BBank overdraft
CStatutory reserve
DTrade payables
Answer & Solution
Correct answer: A. Share warrants
Warrants give the right to buy shares, so they can raise the share count and dilute EPS.
Keep practising AS 20 Earnings Per Share
Browse all AS 20 Earnings Per Share questions for CA Inter, or explore more Accounting topics.
Related questions
P/E can also be found by market capitalization divided by:As a ratio of a stock to a flow, the P/E ratio has the units of:Forward P/E divides price by which earnings amount?Trailing P/E uses earnings from which period?A company earns an EPS of Rs 12.50 and trades at Rs 150. Its P/E ratio is:A share trades at $24 and its EPS is $3. Its P/E ratio is:The P/E ratio compares a company's share price with its:Adjusted price charts divide pre-split closing prices by: