Fully vested incentive stock options for 60,000 shares of common stock at an exercise price of $50 were outstanding at the beginning of 2018. The market price of the stock averaged $56 during the year.
Required:
If these options are exercised on March 1 of the current year, by how many shares will the options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?

Question

Quizplus · Accepted Answer

The Answer of Fully vested incentive stock options for 60,000 shares of common stock at an exercise price of $50 were outstanding at the beginning of 2018. The market price of the stock averaged $56 during the year.
Required:
If these options are exercised on March 1 of the current year, by how many shares will the options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?

Fully Vested Incentive Stock Options for 60,000 Shares of Common