Why this is mistaken
More shares always make EPS more dilutive. Test the combined numerator and denominator. An assumed conversion can increase EPS and must then be excluded.
Where to watch
When this mistake may appear
- The arithmetic produces a lower per-share amount.
Check your work
Your work may contain this mistake if:
- Accepts the quotient without tracing the numerator, dated shares, instrument method, and antidilution control.