Multiple Choice
Harvey Inc. reported net earnings of $700,000 for the year. Harvey has 200,000 shares of common stock outstanding all year. Two years ago, the company granted 20,000 stock options that allow employees to purchase 20,000 shares for $15 each. The company stock has averaged $20 in the market during the year. Compute the basic and diluted EPS.
A) basic EPS $3.50; diluted EPS $3.41
B) basic EPS $3.50; diluted EPS $3.50
C) basic EPS $3.41; diluted EPS $3.41
D) basic EPS $3.50; diluted EPS $2.34
Correct Answer:
Verified
Correct Answer:
Verified
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