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Question - L.A. Caps Company had 50,000 shares of common stock outstanding on January 1, 2016. On April 1, 2016, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The average market price of common stock was $12. The company reported net income in the amount of $269,915 for 2016. What is the basic earnings per share (rounded)?
$4.10.
$3.86.
$3.60.
$4.15.
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