Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Stine Inc. had 1,000,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1,000,000 shares were issued for cash. Stine also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 300,000 shares of common stock at $28 per share. The average market price of Stine's common stock was $35 during 2021. The number of shares to be used in computing diluted earnings per share for 2021 is

Sagot :

abiolataiwo2015

The number of shares to be used in computing diluted earnings per share for 2021 is 1,560,000

Diluted earnings per share=(1,000,000* 6/12) + (2,000,000 *6/12) + [((35 – 28) ÷35) *300,000]

Diluted earnings per share=500,000+1,000,000+60,000

Diluted earnings per share= 1,560,000

Therefore The number of shares to be used in computing diluted earnings per share for 2021 is  1,560,000

Learn more about Diluted earnings per share here:

https://brainly.com/question/22589859

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.