There is a question in Book 7 in which a company has convertible debentures that can be exercised in 7 years (but not at the present time). I figured that this wouldn’t be included in the dilutive EPS formula since the securities could not be converted. The schweser notes fail to elaborate on this topic. So, do we always include convertible securities in the diluted EPS formula even if they cannot be physically converted at the time (provided that they are in fact dilutive)?
Yep