medium · Investment Banking implied-share-price

Which of the following is true regarding 'Anti-dilutive' securities in the calculation of Diluted EPS?

  1. They are included in the calculation only when the company happens to be reporting a net loss.
  2. They are excluded from the calculation because their inclusion would increase EPS.
  3. They represent common shares that the company has already repurchased and formally retired.
  4. They are included in the denominator solely to increase the reported EPS figure.

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