Patent ID: 7778908

Claim:
A computerized method comprising: creating a book entry in a database, the book entry describing a convertible instrument purchased by a holder from an issuer under specified terms, wherein the specified terms comprise a cash settlement feature which enables the issuer to settle at least a portion of its conversion obligation in cash, as opposed to shares of the issuer's stock, anytime the convertible instrument is converted before maturity of the convertible instrument; recording, in the database, an intention by the issuer to settle a par value of the convertible instrument in cash and the remainder in shares of the issuer's stock anytime the convertible instrument is converted before maturity of the convertible instrument; and calculating, based at least partially on the intention and using a central processing unit (CPU) operatively connected to the database, a diluted earnings per share (EPS) value for the issuer using a treasury stock method of accounting that comprises subtracting interest expense associated with the convertible instrument from net income of the issuer.