Reference no: EM132973132
Problem 1: When applying the treasury shares method for diluted earnings per share, the price of the common shares used for the assumed repurchase is the
a. market price at the end of the year.
b. market price at the beginning of the year.
c. market price at the time the options or warrants were granted.
d. average market price during the year.
e. market price at the time the options or warrants are to be exercised.
Problem 2: Katz declared and paid cash dividends in January of the current year to its common shareholders. The dividend
Select one:
a. will be added to the numerator of the earnings calculation per share for the current year.
b. will be added to the denominator of the earnings per share calculation for the current year.
c. will be subtracted from the numerator of the earnings per share calculation for the current year.
d. will be subtracted from the denominator of the earnings per share calculation for the current year.
e. has no effect on the earnings per share for the current year.