Question
Venzuela Companys net income for 2014 is $47,700. The only potentially dilutive securities outstanding were 1,100 options issued during 2013, each exercisable for one share
Venzuela Companys net income for 2014 is $47,700. The only potentially dilutive securities outstanding were 1,100 options issued during 2013, each exercisable for one share at $8. None has been exercised, and 10,700 shares of common were outstanding during 2014. The average market price of Venzuelas stock during 2014 was $20. (a) Compute diluted earnings per share.
(b) Assume the same facts as those assumed for part (a), except that the 1,100 options were issued on October 1, 2014 (rather than in 2013). The average market price during the last 3 months of 2014 was $20.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started