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Harvey Inc. reported net earnings of $500,000 for the year. Harvey has 200,000 shares of common stock outstanding all year. Two years ago the company
Harvey Inc. reported net earnings of $500,000 for the year. Harvey has 200,000 shares of common stock outstanding all year. Two years ago the company granted 20,000 stock options that allow employees to purchase shares for $15 each. The company stock has averaged $20 in the market during the year. Compute the basic and diluted EPS.
A. basic EPS $2.50; diluted EPS $2.44
B. basic EPS $2.50; diluted EPS $2.50
C. basic EPS $2.50; diluted EPS $2.27
D. basic EPS $2.44; diluted EPS $2.44
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