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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

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