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Biotech / Medical : Sepracor-Looks very promising

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To: IRWIN JAMES FRANKEL who wrote (2167)3/27/1999 7:54:00 PM
From: Biomaven  Read Replies (1) of 10280
 
Irwin,

You basically do the calculation Jonathan described in his post - you assume conversion (thus increasing the number of shares) but subtract out the interest or dividend payment. If the result is a lower EPS, that is the number you report, in which case the fully diluted number of shares would include the shares resulting from the assumed conversion.

BTW, re-reading my post to which Jonathan was replying (as I should have done earlier) I see that he was correct in pointing out that for convertibles one doesn't use the treasury stock method in calculating dilution (as I incorrectly implied in that post). My apologies.

Peter
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