Multiple Choice
LASTEPS Co.had granted 20,000 options to buy one common share at $10 per share several years ago.The company earned $200,000 this year and had 300,000 common shares outstanding the entire year.The company earns interest at 8% and has a 40% tax rate.Given only the above information,what are basic EPS and diluted EPS respectively that should be reported? (Rounded to the nearest cent)
A) $0.67; $0.66
B) $0.65; $0.63
C) $0.63; $0.62
D) $0.65; $0.64
E) Only basic EPS need be reported
Correct Answer:
Verified
Correct Answer:
Verified
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