5) ABC had 10,000 common shares outstanding on January 1 and issued a 2-1 stock split on July 1. What is the WACS for basic EPS?

a) 15,000

b) 20,000

c) 7,500

d) 10,000

6) ABC's top executive exercised 100 stock options (strike price: $12, while ABC's shares were trading at $16. Which of the following is most likely to happen?

a) ABC credit $1,600 to common shares

b) ABC debits $1,200 to common shares

c) ABC debits $1,600 to cash

d) ABC debits $400 to loss