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When a Potentially Dilutive Security Is Present,a Company Must Test

Question 57

Multiple Choice

When a potentially dilutive security is present,a company must test the security to see if it is dilutive or antidilutive.Antidilutive securities occur when the diluted EPS is ________.


A) greater than the basic EPS
B) less than the basic EPS
C) the same as basic EPS
D) either the same or less than basic EPS

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