The Treasury Stock Method is a technique used to calculate the potential impact of dilutive securities, such as options and warrants, on earnings per share (EPS). It assumes that proceeds from the exercise of these securities are used to repurchase shares at the average market price. This method helps in determining the diluted EPS, providing a more accurate reflection of a company’s financial performance. What is the treasury stock method? It is a key concept in EPS calculation.
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