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Determine the number of shares

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Question - For a company, each outstanding warrant gives the holder the right to purchase one common share at a cost of $19.70 per share. There were 48,820 such warrants outstanding during a period when the average market price of the common shares was $25.09 per share. Using the treasury stock method for the warrants, determine the number of shares to be added to the weighted average number of shares in the calculation of the fully diluted earnings.

Reference no: EM132896632

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