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"Sunland Company had net income for Year 18 of $611000. The average number of shares outstanding...

"Sunland Company had net income for Year 18 of $611000. The average number of shares outstanding for the period was 209000 shares. The average number of shares under outstanding options, at an option price of $31 per share is 12600 shares. The average market price of the common stock during the year was $36. What should Sunland Company report for diluted earnings per share for the year ended Year 18? (rounded to the nearest penny)"

$2.76

$2.78

$2.90

$2.92
business   accounting   
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Answer #1

Ans...

Diluted EPS = Net Income / (Avg o/s shares+Stock options)

  = $611,000/(209,000+12600)

= $ 2.76 approx

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