Fully vested incentive stock options for 100,000 shares of common stock at an exercise price of $50 were outstanding for the entire year. The market price of the stock during the year averaged $56.
Required:
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?

Question

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The Answer of Fully vested incentive stock options for 100,000 shares of common stock at an exercise price of $50 were outstanding for the entire year. The market price of the stock during the year averaged $56.
Required:
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?

Fully Vested Incentive Stock Options for 100,000 Shares of Common