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.
The proceeds from excercise are 50X24,000=$1,200,000
Using the average market price of ...
The solution explains the impact of stock options on number of shares outstanding.