Question
Ian Co. is calculating earnings per share amounts for inclusion in Ians annual report to shareholders. Ian has obtained the following information from the controllers
Ian Co. is calculating earnings per share amounts for inclusion in Ians annual report to shareholders. Ian has obtained the following information from the controllers office as well as shareholder services:
Net income from January 1 to December 31 $125,000 Number of outstanding shares: January 1 to March 31 15,000 April 1 to May 31 12,500 June 1 to December 31 17,000 In addition, Ian has issued 10,000 incentive stock options with an exercise price of $30 to its employees and a year-end market price of $25 per share. What amount is Ians diluted earnings per share for the year ended December 31? a. $4.63 b. $4.85 c. $7.35 d. $7.94 PLEASE SHOW WORK. How do you get 7.94?
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