Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume net income for a firm is $1,000,000. Assume its average number of common shares outstanding was 100,000. It has no preferred dividends or preferred
Assume net income for a firm is $1,000,000. Assume its average number of common shares outstanding was 100,000.
It has no preferred dividends or preferred shares. It does have a certain number of options that it has given to employees, all with a strike price of $750. The average market price over the year is $2,000. If diluted EPS is $8, then how many options outstanding are there under the treasury method of calculation? (just write the number of options, so if you think the correct answer is 12,345 options, then write 12,345)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started