Question

__________ earnings per share measures the amount of profit a firm earns per share of outstanding common stock when preferred stock, stock options, warrants, and convertible debt securities are also taken into account.

Answer 1

Diluted

Step-by-step explanation:

Diluted EPS or earnings per share is the calculation used in determining the quality of the earnings per share (EPS) of a company if all the convertible securities were taken into account or exercised. Convertible securities includes convertible debentures, outstanding convertible preferred shares, stock options, warrants, etc.

It is important for the shareholders in a way that it gives an estimate of the earnings to the shareholder in worst of conditions.

Thus the answer is --- Diluted