Question
West Inc. granted 8500 shares of restricted common stock shares at beginning of the year to company managers that will vest after 4 years of
West Inc. granted 8500 shares of restricted common stock shares at beginning of the year to company managers that will vest after 4 years of service. Net income for the year is 540000 and 425000 common shares were outstanding the entire year. The fair value of the shares on January 1 is $25 per share. The average market price of common shares during the year is $25 per share.
Required
a. Compute basic earnings per share.
b. Compute diluted earnings per share.
Step by Step Solution
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Step: 1
a To compute basic earnings per share we need to divide net income by the weig...
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
