Computing Diluted EPS: Stock Options
Rand Inc. had net income of $1,760,000. During the year, 400,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 40,000 stock options outstanding to purchase a total of 40,000 common shares at $25 for each option exercised.
Required
a. Compute basic EPS.
b. Compute diluted EPS.
For any clarifications please comment.
Get Answers For Free
Most questions answered within 1 hours.