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Compute the basic and diluted eps

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DEF Company. reported net earnings of $500,000 for the year. DEF Company has 200,000 shares of common stock outstanding all year. Two years ago the company granted 20,000 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.

Reference no: EM131773439

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