Gabor Company Had Granted 20,000 Options to Buy One Share

Gabor Company had granted 20,000 options to buy one share of common stock at $10 per share to employees several years ago.The company had net income of $200,000 this year and had 300,000 shares of common stock outstanding the entire year.The average market price per share was $20 and the end of year price was $25.Given only the above information,what are basic and diluted earnings per share respectively for the year?

A) $0.67 $0.67
B) $0.67 $0.65
C) $0.65 $0.64
D) $0.64 $0.64

Correct Answer:

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