Question
Inci Company had 30,000 shares of common stock outstanding on January 1. On April 1, Inci issued 15,000 shares of common stock. Inci had outstanding
Inci Company had 30,000 shares of common stock outstanding on January 1. On April 1, Inci issued 15,000 shares of common stock. Inci had outstanding fully vested incentive stock options for 5,000 shares exercisable at $12 that had not been exercised by its executives. The average market price of common stock was $9. Inci reported net income in the amount of $190,000. What is the effect of the options?
| a. | The options will dilute EPS by -$0.17 per share. | |
| b. | The options are antidilutive. | |
| c. | The options will dilute EPS by $0.17 per share. | |
| d. | The options will dilute EPS by $0.09 per share. | |
| e. | The options will dilute EPS by $0.33 per share. |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
