easy · Investment Banking implied-share-price
A company calculates both basic EPS (using basic shares) and diluted EPS (using the larger diluted share count) on the same net income.
How does diluted EPS typically compare to basic EPS?
- Diluted EPS is always higher than basic EPS
- Diluted EPS and basic EPS are always identical
- Diluted EPS is lower than or equal to basic EPS
- There is no consistent relationship between them
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