An immediate dilution to earnings per share (EPS) would be least likely to occur from A) a 2:1 stock split. B) conversion of debentures. C) refunding a bond at par. D) a 10% stock dividend.

Respuesta :

Answer:

B) conversion of debentures.

Explanation:

Debentures are a type of bond, they are basically unsecured bonds. In this case, some debentures are convertible into stocks and when this happens, earnings per share will be diluted immediately. Diluted earnings per share is basically what earnings per share would be if all the convertible stock options, bonds, etc., would converted into common stocks.

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