Computing Diluted EPS: Stock OptionsRand Inc. had net income of $720,000. During the year, 160,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 16,000 stock options outstanding to purchase a total of 16,000 common shares at $25 for each option exercised.Requireda. Compute basic EPS.b. Compute diluted EPS.Note: Round earnings per share amounts to two decimal places. Net Income Available toCommon StockholdersWeighted Avg. CommonShares OutstandingPerShareBasic EPSAnswerAnswerAnswerDiluted EPSAnswerAnswerAnswer Computing Diluted EPS: Stock OptionsRand Inc. had net income of $720,000. During the year, 160,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 16,000 stockoptions outstanding to purchase a total of 16,000 common shares at $25 for each option exercised.Requireda. Compute basic EPS.b. Compute diluted EPS.Note: Round earnings per share amounts to two decimal places.Net Income Available to Weighted Avg. CommonShares OutstandingPerCommon StockholdersShareBasic EPS2$2$Diluted EPS $

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Answered: Compute basic EPS. b. Compute diluted…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Computing Diluted EPS: Stock Options

Rand Inc. had net income of $720,000. During the year, 160,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 16,000 stock options outstanding to purchase a total of 16,000 common shares at $25 for each option exercised.

Required

a. Compute basic EPS.

b. Compute diluted EPS.

Note: Round earnings per share amounts to two decimal places.

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Basic EPS	Answer	Answer	Answer
Diluted EPS	Answer	Answer	Answer

Computing Diluted EPS: Stock Options
Rand Inc. had net income of $720,000. During the year, 160,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 16,000 stock
options outstanding to purchase a total of 16,000 common shares at $25 for each option exercised.
Required
a. Compute basic EPS.
b. Compute diluted EPS.
Note: Round earnings per share amounts to two decimal places.
Net Income Available to Weighted Avg. Common
Shares Outstanding
Per
Common Stockholders
Share
Basic EPS
2$
2$
Diluted EPS $

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