Multiple Choice
McManus Inc.reported net earnings of $400,000 for the year.McManus has 200,000 shares of common stock outstanding all year.On March 31,the company granted 40,000 stock options that allow employees to purchase 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 $2.00; diluted EPS $1.67
B) basic EPS $2.00; diluted EPS $1.91
C) basic EPS $2.00; diluted EPS $1.93
D) basic EPS $1.93; diluted EPS $1.93
Correct Answer:
Verified
Correct Answer:
Verified
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