(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venezuela's stock during 2020 was $20.
Question:
(a)Compute diluted earnings per share. (Round to nearest cent.)
Assume the same facts as (a) except that the exercise price is $60/share and the avg market price is $20/share
Diluted Earning Per Share = $4.67
($50,000 + $0)/(10,000 + 700)
Working
No of share (potentially) = [(Market price – Option price)/Market Price] x Number of options
= ($20 - $6)/$20 x 1,000
= 700
(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially...
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potentially dilutive securities outstanding were 1,100 options
issued during 2019, each exercisable for one share at $6. None has
been exercised, and 10,200 shares of common were outstanding during
2020. The average market price of Skysong’s stock during 2020 was
$25.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per
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$
(b) Assume the same facts as those assumed for
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Exercise 16-26
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potentially dilutive securities outstanding were 1,200 options
issued during 2019, each exercisable for one share at $6. None has
been exercised, and 9,300 shares of common were outstanding during
2020. The average market price of Headland’s stock during 2020 was
$18.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$
(b) Assume the same facts as those assumed...
Current Attempt in Progress Sheridan Company's net income for 2020 is $47,100. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exerclsable for one share at $6. None has been exercised, and 9,700 shares of common were outstanding during 2020. The average market price of Sheridan's stock during 2020 was $15 (a) Compute diluted earnings per share. (Round answer to 2 decimal places, eg. $255. $ Diluted earnings per share (b) Assume the same facts as...
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potentially dilutive securities outstanding were 1,100 options
issued during 2016, each exercisable for one share at $6. None has
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2017. The average market price of Novak’s stock during 2017 was
$20.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$
(b) Assume the same facts as those assumed for
part...
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potentially dilutive securities outstanding were 1,000 options
issued during 2016, each exercisable for one share at $6. None has
been exercised, and 10,400 shares of common were outstanding during
2017. The average market price of Grouper’s stock during 2017 was
$20.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per
share
$
(b) Assume the same facts as those assumed for
part...
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