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For the year ended in 2021, Florence Company had the following: $2,300,000 of Net Income 5,000,000 common shares outstanding on January 1 350,000 shares of
For the year ended in 2021, Florence Company had the following:
- $2,300,000 of Net Income
- 5,000,000 common shares outstanding on January 1
- 350,000 shares of 5% cumulative, $10 par value preferred stock issued in 2018 (Dividends were paid annually except for in 2020).
On May 1 it repurchased as treasury stock 300,000 shares of common stock
On June 1 it granted stock options to purchase 100,000 shares of common stock at an exercise price of $24.The average market price for the year is $26.
In the computation of diluted earnings per share, how many shares should be added to the denominator related to the deemed exercise of the stock options?
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