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A company has basic earnings per share of $12.18. If the tax rate is 25%, which of the following securities would be dilutive? 15,000 incentive
A company has basic earnings per share of $12.18. If the tax rate is 25%, which of the following securities would be dilutive?
| 15,000 incentive stock options with an exercise price of $17 to its employees and an average market price of $15 per share. |
| Cumulative 9%, $30 par preferred stock. |
| Incentive stock options | Cumulative preferred stock |
A.
| Yes | Yes |
B.
| Yes | No |
C.
| No | Yes |
D.
| No | No |
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
