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Yes True, or it will not be diluted, For the calculation of the diluted Eps all compenents who will not reduce the normal EPS are excluded (Nominator) and the WACSO (denominator) remain same.
diluted earnings per share can not exceed basic earnings so answere is true because dillution comes from increase in number of shareholders on basic share holders which as a result leads to increase in number share holders to receive devident
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