Question
. Senior Company had 40,000 shares of common stock outstanding during the entire 2020. The average market price of its stock at the same period
. Senior Company had 40,000 shares of common stock outstanding during the entire 2020. The average market price of its stock at the same period was $44.26. Senior also had outstanding compensatory share options to purchase 5,000 shares of common stock at $31 per share. The unrecognized compensation cost (net of tax) relating to these share options is $1.25. During 2020 Senior earned $155,000 of income after tax. a. Please show your calculations for Senior Companys Diluted Earnings Per Share in 2020. b. What is the name of the method you use in a to complete the Diluted Earnings Per Share of Senior Company in 2020? Please briefly explain the method with its key points.
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