000,000.EXPLANATIONTHE TREASURY STOCK METHOD WOULD ALLOW THE 1 MILLI...

1, - UNDERSTANDING INCOME STATEMENTS 1
UNDERSTANDING INCOME STATEMENTS 1
1,000,000.ExplanationThe treasury stock method would allow the 1 million additional shares to be partially offset by the number of shares that could berepurchased with the amount of money received for those shares. In this case, the 1 million shares issued would be offset by(1,000,000 × $42 / $56) or 750,000 shares.

Question #20 of 90

Question ID: 414165

Assume that the exercise price of an option is $9, and the average market price of the stock is $12. Assuming 992 options areoutstanding during the entire year, what is the number of shares to be added to the denominator of the Diluted EPS?ض A)