\[Basic{\text{ }}EPS = \frac{{net{\text{ }}income - preferred{\text{ }}dividends}}{{weighted{\text{ }}average{\text{ }}number{\text{ }}of{\text{ }}common{\text{ }}shares{\text{ }}outstanding}}\]
\[begin{array}{l} Diluted{\text{ }}EPS = {\text{ }}\ \frac{{Adjusted{\text{ }}income{\text{ }}for{\text{ }}common{\text{ }}shareholders}}{{weighted{\text{ }}average{\text{ }}common{\text{ }}and{\text{ }}potential{\text{ }}common{\text{ }}shares{\text{ }}outstanding}} end{array}\]
Where: