EPS (Diluted)

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EPS (Diluted) is a rough measurement of the amount of a company's profit that can be allocated to one share of its stock. Diluted EPS takes into account all of the outstanding dilutive securities that could potentially be exercised (such as stock options and convertible preferred stock) and shows how such an action would impact earnings per share. EPS (Diluted) is calculated as EPS (Diluted) = ({Net Income} - {Preferred dividends}) / {Shares Outstanding}