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Realty1 Has 40,000 Outstanding Stock Options

Question 100

Multiple Choice

Realty1 has 40,000 outstanding stock options. Its net income for the year is $250,000. Each option allows the holder to purchase a share of stock for $8. The average market value of the shares for the year was $17. What is the incremental income per common from the options?


A) $0.00
B) $1.00
C) $9.00
D) $8.00

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