Find the amount which should be shown as mack diluted

Assignment Help Financial Accounting

Reference no: EM132807728

The 20x7 profit of Mack Co. was ?100,000, and 100,000 shares of its common stock were outstanding during the entire year. In addition, there were outstanding options to purchase 10,000 shares of common stock at ?10 per share. These options were granted in 20x5 and none had been exercised by December 31, 20x7.

Market prices of Mack's common stock during 20x7 were:

January 1 ?20 per share

December 31 ?40 per share

Average price ?25 per share

Problem 1: The amount which should be shown as Mack's diluted earnings per share for 20x7 is (rounded to the nearest cent)

a. ?100,000 ÷ 110,000 shares = ?.91

b. ?100,000 ÷ 106,000 shares = ?.94

c. ?100,000 ÷ 105,000 shares = ?.95

d. ?100,000 ÷ 107,500 shares = ?.93

Reference no: EM132807728

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