Question
Davis Corp has 10,000 shares of common stock outstanding during 2019. The company's net income for 2019 is $45,000. Preferred dividends for 2019 are $5,000.
Davis Corp has 10,000 shares of common stock outstanding during 2019. The company's net income for 2019 is $45,000. Preferred dividends for 2019 are $5,000.
In addition, Davis issued 1,000 stock options to the employees on July 1, 2018, each exercisable for one share of common stock at $8. None of the options were exercised in 2019. The average market price of the stock during 2019 was $20.
a) Compute diluted EPS for 2019.
b) Assume that the stock options were issued on Oct. 1, 2019 instead of 2018. Compute diluted EPS for 2019.
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Beyond Agile Auditing Three Core Components To Revolutionize Your Internal Audit Practices
Authors: Clarissa Lucas
1st Edition
1950508676, 978-1950508679
