Question
Cherry Corporation had 600,000 shares of common stock outstanding during 2020. In addition, it had 80,000 stock options outstanding, which had been granted to certain
Cherry Corporation had 600,000 shares of common stock outstanding during 2020. In addition, it had 80,000 stock options outstanding, which had been granted to certain executives on January 1, 2020, and which gave them the right to purchase shares of Cherry's stock at an option price of $40 per share. The average market price of Cherry's common stock for 2020 was $50. Net income was $1,000,000.
- Compute EPS.
- Compute DEPS.
- Compute DEPS assuming that the options were granted on September 1, 2020, not January 1.
SHOW ALL WORK. Round to the nearest penny.
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
