Determine diluted earnings per share for 2013

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Reference no: EM1374892

Diluted earnings per share.

Dunbar Company had 400,000 shares of common stock outstanding through the year 2013. In addition, at 31st December, 2013, 60,000 shares were issuable upon exercise of executive stock options which require a $40 cash payment upon exercise (options granted in 2011). The average market price through 2013 was $50.

Instructions

Evaluate the number of shares to be used in determining diluted earnings per share for 2013.

Reference no: EM1374892

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