Calculate the incremental number of share

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Question: ABC company earns a net profit of $500,000, and has $7,000,000 common shares outstanding that sell on the open market for an average of $18 per share. In addition, there are 550,000 options outstanding that can be converted to XYZ company's common stock at $17 each.

Please provide the clear calculation on each question and brief explanation with your analysis. .

[1] Calculate ABC company Earning per share (EPS)

[2] Calculate the number of shares that would have been issued at the market price.

[3] Calculate the shares have been purchased with the proceeds from the options

[4] Calculate the number of shares that could have been purchased from the number of options exercised.

[5] Calculate the incremental number of share to the shares already outstanding.

[6] Calculate the Diluted Earnings per share.

Reference no: EM131931309

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