A company's net income is $100,000, and its weighted-average shares outstanding are 20,000. During the year, the company issues 5,000 ESOs at an exercise price of $20.
What will be the basic EPS if average stock price during the year is $35 and treasury shares that can be purchased are 1000?
A. $3
B. $6
C. $5
D. $4.17
Answer: C
What will be the diluted EPS if average stock price during the year is $15 and treasury shares that can be purchased are 6000?
A. $3
B. $5
C. $6
D. $4.17
Answer: B
What will be the diluted EPS if average stock price during the year is $35 and treasury shares that can be purchased are 1000?
A. $3
B. $5
C. $6
D. $4.17
Answer: D
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