On January 1, 2015, Primavera Corporation had 55,000 shares of common stock outstanding that did not change

Question:

On January 1, 2015, Primavera Corporation had 55,000 shares of common stock outstanding that did not change during 2015. In 2014, Primavera granted options to certain executives to purchase 12,000 shares of its common stock at $6 each. The average market price of common was $11 per share for 2015. Compute the number of shares to be used in computing diluted EPS for 2015.

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...