Question

At January 1, Year 1, under its restricted stock unit (RSU) plan, Label Corporation grants RSUs...

At January 1, Year 1, under its restricted stock unit (RSU) plan, Label Corporation grants RSUs representing 10,000 of its $1 par common shares to executives. The shares are subject to forfeiture if employment is terminated within a five-year vesting period. Shares have a current market price of $10 per share and their average market price during Year 1 was $20 per share. What is the number of shares that will be added to the denominator of diluted EPS for Year 1?

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