A business strategy which will simplify the determination of whether convertible securities are dilutive or antidilutive to EPS is: Comparing the incremental effect of the conversion.
<h3>What is
EPS?</h3>
EPS is an acronym for earnings per share and it can be defined as the portion of a business firm's profit that is allocated per outstanding share of common stock of the business firm, so as to serve as a profitability indicator.
This ultimately implies that, a business strategy which will simplify the determination of whether convertible securities are dilutive or antidilutive to earnings per share (EPS) is comparing the incremental effect of this conversion.
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Complete Question:
Which of the following strategies will simplify the determination of whether convertible securities are dilutive or antidilutive to EPS?
Assume all convertible securities are dilutive.
Calculating EPS, including each possible combination of convertible securities.
Comparing the incremental effect of the conversion.
