If stock options have an exercise price of $30 and the average market price is $25, the stock options for diluted EPS will be:
Added by Derek N.
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In this case, the exercise price is $30 and the average market price is $25. Show more…
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Shu N.
Foyle, Inc., had 610,000 shares of common stock issued and outstanding at December 31, 2012. On July 1, 2013, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2013. The average market price of Foyle's common stock was $20 during 2013. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2013?
Manasvee S.
A company's stock price is $$\$ 50$$ and 10 million shares are outstanding. The company is considering giving its employees 3 million at-the-money 5-year call options. Option exercises will be handled by issuing more shares. The stock price volatility is $25 \%$, the 5-year risk-free rate is $5 \%$, and the company does not pay dividends. Estimate the cost to the company of the employee stock option issue.
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