Question
Larsen Company had granted 20,000 options to buy one share of common stock at $10 per share to employees several years ago. The company had
Larsen Company had granted 20,000 options to buy one share of common stock at $10 per share to employees several years ago. The company had net income of $200,000 this year and had 300,000 shares of common stock outstanding the entire year. The average market price per share was $20 and the end of year price was $25. Given only the above information, what are basic and diluted earnings per share respectively for the year? a. $.67 $ .67 b. $.67 $ .65 c. $.65 $.64 d. $.64 $.64 ANS: B
. The following information relates to the Simplex Company for 2008: Net income, $50,000 Common stock, shares outstanding on January 1: 30,000 June 30, 2008, issued 2,000 shares of 8% cumulative convertible preferred stock, $100 par value, each share convertible into 10 shares of common stock. September 30, 2008, issued a 40% stock dividend. What is diluted earnings per share? a. $1.00 b. $.89 c. $.81 d. $.76 ANS: B
I just need the solution
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started