Crowe Interior Designs of Santa Monica granted 300,000 qualified employee options on June 1 of the current

Question:

Crowe Interior Designs of Santa Monica granted 300,000 qualified employee options on June 1 of the current year. The options allow an employee to exchange each option for 36 shares of the company’s at an exercise price of $ 20 per share. The average market price of Crowe’s common shares is $ 18 per share. Based on this information, compute the incremental shares to include in the denominator of the diluted earnings per share ratio. .
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...