Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sage Companys net income for 2020 is $51,500. The only potentially dilutive securities outstanding were 900 options issued during 2019, each exercisable for one share

Sage Companys net income for 2020 is $51,500. The only potentially dilutive securities outstanding were 900 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,700 shares of common were outstanding during 2020. The average market price of Sages stock during 2020 was $18. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 900 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $18. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Al Arens

1st Edition

0130463035, 9780130463036

More Books

Students also viewed these Accounting questions

Question

Summarize the economic impact of safety.

Answered: 1 week ago

Question

Summarize the prevalence of unions.

Answered: 1 week ago