Asked by Caden Coulson on May 03, 2024
Verified
When a company has no convertible securities and no stock options or warrants outstanding,the company has a simple capital structure.
Convertible Securities
Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically common stock, at a predetermined price or timing.
- Elucidate and determine elementary and diluted earnings per share, taking into account the influence of complicated capital arrangements.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
A simple capital structure is one that has no potential dilutive securities, such as stock options, warrants, or convertible securities.
Learning Objectives
- Elucidate and determine elementary and diluted earnings per share, taking into account the influence of complicated capital arrangements.