Exercise 16-26

Your answer is partially correct.Try again.

I'm having issues with part b of this problem.

Sheffield Company's net income for 2017 is $46,600. The only potentially dilutive securities outstanding were1,100options issued during 2016, each exercisable for one share at $6. None has been exercised, and10,700shares of common were outstanding during 2017. The average market price of Sheffield's stock during 2017 was $20.

(a)Compute diluted earnings per share.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share$ 4.06

(b)Assume the same facts as those assumed for part (a), except that the1,100options were issued on October 1, 2017 (rather than in 2016). The average market price during the last 3 months of 2017 was $20.(Round answer to 2 decimal places, e.g. $2.55.)

Diluted earnings per share $

(My answer was $4.32 but it's showing as incorrect)