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On August 1, 2020 Roy Company issued 1,000 options, each exercisable for one share of $12. As of December 31, 2020, none of the options
On August 1, 2020 Roy Company issued 1,000 options, each exercisable for one share of $12. As of December 31, 2020, none of the options have been exercised, and 25,000 shares of common stock were outstanding during 2020. Roy's net income for 2020 is $60,000 and the average market price of Roy's stock during the last five months of 2020 was $25. Compute diluted earnings per share for 2020.
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