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Determining diluted earnings per share

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Reference no: EM1310297

Dunbar Company had 400,000 shares of common stock outstanding during the year 2013. In addition, at December 31, 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 during 2013 was $50.
Instructions

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

Reference no: EM1310297

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