Multiple Choice
Colselo has 200,000 common shares outstanding for the year and net income of $500,000. It has issued options to acquire 10,000 shares of common stock and has 20,000 shares of $100, 6% cumulative nonconvertible preferred stock, both of which were outstanding for the entire year. The exercise price for the options is $20 per share and the average market price during the year is $15 per share. Compute basic and diluted EPS.
A) basic EPS $2.50; diluted EPS $2.38
B) basic EPS $2.50; diluted EPS $1.81
C) basic EPS $1.90; diluted EPS $1.90
D) basic EPS $1.90; diluted EPS $2.38
Correct Answer:
Verified
Correct Answer:
Verified
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