Answer :
Final answer:
The fully diluted EPS of Starbucks and the dilutive effect on the total number of common shares outstanding cannot be determined without specific information about Starbucks' dilutive securities. It is recommended to refer to Starbucks' financial statements or disclosures for accurate calculations and details.
Explanation:
To calculate the fully diluted EPS of Starbucks, we need to consider the impact of all dilutive securities. Unfortunately, the question does not provide information about the specific dilutive securities of Starbucks. However, we can discuss the general concept and process.
Dilutive securities are financial instruments that can potentially increase the number of common shares outstanding and reduce the EPS. Examples of dilutive securities include stock options, convertible bonds, and stock warrants.
To calculate the fully diluted EPS, we need to determine the potential additional shares that would be issued if all dilutive securities were exercised or converted. This calculation involves adjusting the weighted average number of common shares outstanding by adding the potential additional shares.
Without specific information about Starbucks' dilutive securities, we cannot provide an accurate calculation of the fully diluted EPS or the dilutive effect on the total number of common shares outstanding. It would be best to refer to Starbucks' financial statements or disclosures for the specific details.
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