To calculate diluted EPS, the accountant does all of the following except:
O a. adds back to net income any compensation expense recognized on the employee stock options
O b. enters only the net incremental shares issued (shares issued under options minus assumed shares repurchased) in the computation of diluted EPS.
O c. adds back any dividends on convertible preferred
stock the firm subtracted in computing net income to common shareholders.
O d. adds back any interest expense (net of taxes) on convertible bonds