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Stock options

Stock options exercisable at $50 per share to obtain 24,000 shares of common stock were outstanding dw period when the average market price of the common stock was $60 and the ending market price was $55.


By how many shares will the assumed exercise of these options increase the weighted-a" number of shares outstanding when calculating diluted earnings per share? Show all computations.

Solution Preview

The proceeds from excercise are 50X24,000=$1,200,000

Using the average market price of ...

Solution Summary

The solution explains the impact of stock options on number of shares outstanding.