Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your company has 2,000 options outstanding and each can be exchanged for one share of common stock at an exercise price of $20. The average

Your company has 2,000 options outstanding and each can be exchanged for one share of common stock at an exercise price of $20. The average market value for each share was $25 throughout the year. Calculate the incremental number of shares that will be used for the December 31, 2019 diluted earnings per share calculation using the treasury stock method (ie how many shares will you post to the denominator in your calculation?).

a 2000

b 400

c 40,000

d There will be no impact since these options are anti dilutive

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

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

3rd Canadian edition

1-119-40285-5, 111940276X, 978-1119566007

More Books

Students also viewed these Accounting questions

Question

Journal of Applied Psychology

Answered: 1 week ago

Question

=+2. Are you happy to pay a price premium for CSR products?

Answered: 1 week ago