Zeba Company granted 27 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. Zeba's common shares have a market price of $10 per share on January 1, 2012, the grant date.
Required:
When calculating diluted EPS at December 31, 2013, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $10 during 2013?
Correct Answer:
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