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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
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