45 During the most recent year, a company had outstanding stock options, which could be exercised for the purchase of the company's common stock. The exercise price for the options was $20 per share andthe average market price for the company's common stock was $14 per share.How should the company evaluate the stock options when determining diluted earnings per share?The stock options are dilutive because the option price is greater than the average market price.The stock options are antidilutive because they were not exercised during the year.The stock options are antidilutive because the option price is greater than the average market price.The stock options are dilutive because they were not exercised during the year.

Dilutive Securities are securities that, if converted into common stock, would decrease earnings per…

Answered: 45 During the most recent year, a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 26P

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A stock is currently selling for $60 a share. What is the percentage gain or loss on the followingtransactions? Identify if it is a gain or loss.a. You take a long position and the stock’s price declines to $50. b. You sell the stock short and the price increases to $70.
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5. February 4, 2022, Hamdan, Inc., had outstanding employee stock options representing over 272 million shares of its stock. Hamdan accountants estimated the value of these options using the Black-Scholes Merton formula and the following assumptions: S = current stock price = $20.72 K = option strike price = $23.15 r=risk-free interest rate= .043 o=stock volatility = .29 T= time to expiration = 3.5 years Suppose you hold Hamdan employee stock options representing options to buy 10.000shares of LLL stock. You wish to hedge your position by buying put options with three-month expirations and a $22.50 strike price. Required a. What was the estimated value of these employee stock options per share of stock? (Note. Hamdan pays no dividends.) b. How many put option contracts are required
You bought a stock three months ago for $43.23 per share. The stock paid no dividends. The current share price is $46.36 What is the APR of your investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the EAR of your investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) APR EAR ....... % %
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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A stock is currently selling for $30.00 a share. What is the gain or loss on the following transactions? Use a minus sign to enter the amount as a negative value. Round your answers to the nearest cent. You take a long position and the stock’s price declines to $16.85. $ You sell the stock short and the price declines to $16.85. $ You take a long position and the price rises to $43.65. $ You sell the stock short and the price rises to $43.65.
Please answer question 4b I and II. This is not graded it's a practice question
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