000 / (50,000 + 20,000) = $2.86 PER SHARE. THE WARRANTS ARE OUT OF...

200, - UNDERSTANDING INCOME STATEMENTS 1 200, - UNDERSTANDING INCOME STATEMENTS 1
UNDERSTANDING INCOME STATEMENTS 1
200,000 / (50,000 + 20,000) = $2.86 per share. The warrants are out of the money at a stock price of $20.

Question #69 of 90

Question ID: 414208

When calculating earnings per share (EPS) for firms with complex capital structures, stock options are ordinarily considered tobe:ض A)potentially dilutive securities.غ B)derivative securities.غ C)antidilutive securities.ExplanationDilutive securities are securities that decrease EPS if they are exercised or converted to common stock. When the exercise priceis less than the average market price, stock options are considered to be dilutive, Stock options, warrants, convertible debt, andconvertible preferred stock are examples of potentially dilutive securities.

Question #70 of 90

Question ID: 414181

Selected information from Caledonia, Inc.'s financial activities in the year 20X6 is as follows:Net income = $460,000.