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What is the denominator to compute the diluted earnings

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Reference no: EM132464808

Problem - Smith Corporation had 30,000 shares of common stock outstanding during the year. In addition, there were compensatory share options to purchase 3,000 shares of common stock at $20 a share outstanding the entire year. The average market price for the common stock during the year was $36 a share. The unrecognized compensation cost (net of tax) relating to these options was $4 a share. What is the denominator to compute the diluted earnings per share?

a. 31,000

b. 31,333

c. 31,667

d. 33,000

Reference no: EM132464808

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