When applying the treasury stock method, the price of the common shares used for the assumed repurchase is the

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The price of the common shares used for the assumed repurchase is typically the average market price during the year. This is because options or warrants are typically exercised over a period of time rather than all at once, so the average market price over that period is deemed more representative of the fair value of the shares.

When Applying the Treasury Stock Method, the Price of the Common