Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Slytherin Co. has stock warrants outstanding throughout 2021, each exercisable for one share of common stock. The following information is provided for 2021: Item Amount

Slytherin Co. has stock warrants outstanding throughout 2021, each exercisable for one share of common stock. The following information is provided for 2021:

Item Amount
Number of warrants outstanding 33,000
Exercise (strike) price per warrant $5
Average market price per share $25

For the diluted earnings per share calculation in 2021, how many shares should be added to the denominator because of these stock warrants?

0

6,600

33,000

26,400

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

Students also viewed these Accounting questions