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A Company with a 40% Tax Rate Had 50,000 Shares

Question 46

Multiple Choice

A company with a 40% tax rate had 50,000 shares of common stock and the following three potentially dilutive issues outstanding for the entire year: A company with a 40% tax rate had 50,000 shares of common stock and the following three potentially dilutive issues outstanding for the entire year:   What is the correct ordering (ranking) of the dilutive issues for determining their inclusion into diluted earnings per share? A)  1,2,3 B)  3,1,2 C)  3,2,1 D)  2,1,3 What is the correct ordering (ranking) of the dilutive issues for determining their inclusion into diluted earnings per share?


A) 1,2,3
B) 3,1,2
C) 3,2,1
D) 2,1,3

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