Additional shares obtained through the treasury stock method factor into the calculation of the diluted earnings per share (EPS). This method assumes that the proceeds a company receives from an ...

This method underscores the importance of considering both basic and diluted EPS when evaluating a company’s financial ...

Learn about our editorial policies When a company issues additional shares of stock, it can reduce the ... Using the if-converted method, diluted EPS would equal $19.42 ([10,000,000 + ($100,000 ...