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Solution Library
Calculation Of Diluted Earnings Per Share
Question
Stine Inc. had 500,000 shares of common stock issued and outstanding at December 31, 2014. On July 1, 2015 an additional 500,000 shares were issued for cash. Stine also had stock options outstanding at the beginning and end of 2015 which allow the holders to purchase 150,000 shares of common stock at $28 per share. The average market price of Stine’s common stock was $35 during 2015. The number of shares to be used in computing diluted earnings per share for 2015 is
a. 1,120,000
b. 1,030,000
c. 870,000
d. 780,000
Summary
The question belongs to Accounting and it discusses about calculation of diluted earnings per share for a company for the year 2015.
Total Word Count 51
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