Basic and Diluted EPS

[bhavani prasad]

Dear Friends

What is the difference between Basic and Diluted EPS.



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CS Bhavani Prasad C N
Company Secretary

[vickyp...@gmail.com]

Hello bhavani,
in my opinion, the difference between basic & diluted EPS is that basic EPS is applicable to all the companies i.e. PAT\No. of equity shares and diluted EPS applicable to conversion of warrants into shares is involved...

Correct me if i am wrong....

Sent from my Nokia phone

Dear Friends

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[sonam malkan]

Hi

 

 

Diluted earnings per share is calculated on the assumption that all convertible securities issued by the company have been converted into common stock, therefore the total earnings have to be divided among more shares of stock. Basic earnings per share is based on the assumption that convertible securities are not converted. The calculation of EPS is actually much more complicated, but the above gives you a good idea of what is involved.

 

Rgds

Sonam

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Thanks & Regards
Sonam