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## Diluted Earnings per Share

Diluted earnings per share, or Diluted EPS, is a firm's net income divided by the sum of it's average shares and other convertible instruments.

A company's net income can be found on its income statement.

A company's average shares refers to the weighted average of common shares throughout the year. The weights of each factor would be the length of time each quantity of common shares is outstanding.

## $\frac{n}{a+c}$

Here,n=Net Income,a=Avg Shares,c=Other Convertiable Instruments

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