Under the treasury stock method, the number of shares of common stock assumed to be reacquired is determined by using the

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The treasury stock method assumes that any proceeds from a potential exercise of options or warrants will be used to repurchase shares of common stock at the average market price during the period. Therefore, the average market price of the stock is used to determine the number of shares assumed to be reacquired.

Under the Treasury Stock Method, the Number of Shares of Common