Fully vested incentive stock options exercisable at $30 per share to obtain 15,0

Question

Fully vested incentive stock options exercisable at $30 per share to obtain 15,000 shares of common stock were outstanding during a period when the average market price of the common stock was $45 and the ending market price was $45.

By how many shares will the assumed exercise of these options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?

Number of shares equal   _______?

By how many shares will the assumed exercise of these options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?

Number of shares equal   _______?

Explanation / Answer

Solution:

The number of shares to be increased is 15,000 shares.

By 15,000 the number of weighted - average number of shares will increase while calulation diluted earning per share.

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