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Why diluted earnings per share is less than basic earnings

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Reference no: EM132592022

Question 1: Which of the following is a reason why Diluted Earnings Per Share is less than Basic Earnings Per Share for a firm?

Option A) Because the firm has employee stock options that can turn into shares

Option B) Because the firm has debt and can take advantage of leverage

Option C) Because the firm pays dividends

Option D) Because the firm bought back shares during the year

Reference no: EM132592022

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