Why this is mistaken
Diluted instruments follow a fixed type hierarchy. Compute each incremental effect and order from most dilutive to least; the order can change with the period facts.
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.