Question

Diluted earnings per share means that the company's profit is divided by a greater number of shares outstanding, owned by those who contributed capital, including, for example, convertible shares. High diluted EPS can mean

Answer 1

It is a true statement that the Diluted earnings per share means that the company's profit is divided by a greater number of shares outstanding.

What is a Diluted earnings per share?

These tool is used to calculates a company's earnings per share if all the convertible securities were converted.

However, when we have a High diluted EPS, this means that the company is too heavily diluted and the spoils of war are reduced for shareholders.

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