Backhome Companys net income for 2014 is $650,000, and 86,000 shares of common were issued and outstanding
Question:
Instructions
(a) Compute diluted earnings per share. (Round to nearest cent.)
(b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2014, with an exercise price of $27 (the market price of the common stock on that date). The average market price during the last 3 months of 2014 was $29.50.
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...
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Step by Step Answer:
a Diluted Shares assumed issued on exercise 25000 Proceeds 25000 X 2050 512500 Less Treasu...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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