Page 41 - CFA Lecture Day 8 Slides
P. 41
Session Unit 7:
24. Understanding Income Statements (B/B)
tanties
B. The warrants in this case are antidilutive.
The average price per share of $15 is less than
the exercise price of $20. The year-end price per
share is not relevant. Why? The denominator
consists of only the common stock for basic EPS.
Basic EPS of $1.25! So?