Aiken Corporation has compensatory share options for employees to purchase 4,000 common shares at $12 per share

Question:

Aiken has compensatory share options for employees to purchase 4,000 common shares at $12 per share outstanding the entire year. The average market price for the during the year was $20 per share. The unrecognized compensation cost (net of tax) related to the share options is $1 per share. What is the assumed increment in the denominator for computing Aiken’s diluted earnings per share?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...