In this lesson, dig into the complex world of stock compensation plans and their significance in the realm of diluted earnings per share (EPS). Nick explores various incentives such as stock options, appreciation rights, and performance plans, highlighting how they can be compensatory or supplementary to an employee's salary. He elucidates the impact of potential conversions of options and warrants on diluted EPS, emphasizing the need to understand the weight these plans hold in financial reporting. Join Nick as he revisits the critical formulas for calculating the weighted average number of common shares outstanding and the diluted EPS, reinforcing their importance with practice questions to ensure mastery of the concepts.
This video and the rest on this topic are available with any paid plan.
See Pricing