QUESTION 7 If you are calculating Diluted EPS and a company has outstanding stock stock options, the treasury stock method assumes the proceeds that would be received upon exercise are disregarded in the computation of earnings per share if the exercise price of the options and warrants is less than the ending market price of common stock. O none of these are used to calculate the number of common shares repurchased at the average market price. O are added, net of tax, to the numerator. QUESTION 8 When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the: least dilutive effect. higher numerator. most dilutive effect. always stock options