Homework Answers
1. Equity option can only be used to to purchase shares at a set price.
2.Anti-dilutive securities increases shares.
3. $3.20
Computation:-
Weighted average number of shares = 400,000 * 9/12 + 500,000 * 3/12 = 425,000
EPS = $1,360,000 / 425,000 = $3.20 per share.
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