13. Options and warrants are dilutive if a. The exercise price is lower than the average market price b. The exercise price is higher than the average market price c. The exercise price is equal to the average market price d. The option shares represent 20% of the ordinary shares actually outstanding 14. For employee share options, the exercise price shall include a. Fair value of the share options b. Intrinsic value of the share options c. Carrying amount of the share options d. Par value of the share options 15. It is a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.
13. Options and warrants are dilutive if a. The exercise price is lower than the average market price b. The exercise price is higher than the average market price c. The exercise price is equal to the average market price d. The option shares represent 20% of the ordinary shares actually outstanding 14. For employee share options, the exercise price shall include a. Fair value of the share options b. Intrinsic value of the share options c. Carrying amount of the share options d. Par value of the share options 15. It is a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:13. Options and warrants are dilutive if
a. The exercise price is lower than the average market price
b. The exercise price is higher than the average market price
c. The exercise price is equal to the average market price
d. The option shares represent 20% of the ordinary shares actually outstanding
14. For employee share options, the exercise price shall include
a. Fair value of the share options
b. Intrinsic value of the share options
c. Carrying amount of the share options
d. Par value of the share options
15. It is a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible
instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction
of specified conditions.
a. Dilution
b. Antidilution
c. Either dilution or antidilution
d. Neither dilution nor antidilution
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